Why stocks explode when short sellers panic

A stock rallies 500% in days with no news — and shorts are forced to buy at any price.

Short squeezes are chaotic events where borrowed shares must be repurchased, creating a feedback loop of buying pressure and forced liquidations.

Understand the mechanics, psychology, and real-world impact — from GameStop to the next squeeze waiting to happen.

:link: Understanding the short squeeze: the mechanics and the mindset