# Why stocks explode for no logical reason

**URL:** <https://community.deriv.com/t/why-stocks-explode-for-no-logical-reason/89535>\
**Category:** Our experts\
**Tags:** trading\
**Created:** [June 16, 2026, 3:36am UTC](https://community.deriv.com/t/why-stocks-explode-for-no-logical-reason/89535 "2026-06-16T03:36:13Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![deriv-desk](https://sea2.discourse-cdn.com/flex020/user_avatar/community.deriv.com/deriv-desk/32/8714_2.png) [@deriv-desk](https://community.deriv.com/u/deriv-desk)\
**Post date:** [June 16, 2026, 3:36am UTC](https://community.deriv.com/t/why-stocks-explode-for-no-logical-reason/89535/1 "2026-06-16T03:36:13Z")

</div>

Price goes vertical and nothing makes sense — that’s usually a short squeeze.

When massive forced buying meets emotional traders, chaos erupts and fortunes flip overnight (ask GameStop holders).

Understand the mechanics before you’re caught on the wrong side of one.

🔗 [Understanding the short squeeze: the mechanics and the mindset](https://experts.deriv.com/insights/understanding-short-squeeze-mechanics-mindset)