Crypto GlossaryShort squeeze
Short squeeze
In a short squeeze, as short sellers buy assets to cover their positions, the buying pressure can drive the stock price even higher, creating a feedback loop that forces more short sellers to cover and buy back assets. This can result in a sharp and rapid increase in the stock price, potentially leading to significant losses for short sellers who are unable to cover their positions.
Ready to Start?
We’re excited to welcome you to the future of crypto with ENON. Enjoy with your crypto journey!