Short squeeze

When a large number of short sellers target the same stock, the price can rise in a self-perpetuating circle known as a 'short squeeze'.

When investors are bearish on a stock (in other words, they think the price will go down), they can “short” it. This is a way of profiting from a drop in the share price.

The investor borrows the stock from a large holder, in exchange for a small fee, with the agreement to return the stock at a later date. They then sell the stock. They now have the cash from the sale, but they owe the original holder the stock.

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