Long squeeze

It is a market situation where long investors are forced to sell their assets to cover their positions, leading to a decrease in demand and a strong drop in the asset's price. A long squeeze can occur for a number of reasons. For example:

• If a particular security or asset has been experiencing a prolonged period of price increases, investors who have taken long positions may start to become concerned that the market is becoming overvalued

• If a company reports weaker-than-expected earnings, investors who had previously taken long positions may start to sell off their shares in order to limit their losses.

A long squeeze can be particularly damaging to investors who have taken leveraged positions, as they may be forced to sell their positions at a loss in order to meet margin calls. In extreme cases, a long squeeze can lead to a market crash or even a financial crisis.