short squeeze

American

[shawrt skweez] / ˈʃɔrt ˈskwiz /

noun

Stock Exchange.

a condition that occurs when the price of a stock or security rises unexpectedly after an unusually large number of short transactions, forcing the short sellers to cut their losses by rapidly buying up the stock, in turn driving the price even higher.

Etymology

Origin of short squeeze

First recorded in 1875–80

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

High short interest suggests a potential short squeeze, where buying by short-sellers could trigger a near-term rally in software stocks.

From Barron's

It looks like software stocks are gearing up for a potential short squeeze.

From Barron's

Any modest upward movements in these shares could spark a short squeeze.

From Barron's

The idea is that, assuming traders won’t short many more shares of Microsoft, and knowing that they’ll have to cover their positions by buying shares back upon any sign of strength, a short squeeze could be on the way.

From Barron's

Traders could reap large gains by buying these stocks right now, in hopes of a short squeeze.

From Barron's

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023