English
RussianWhat Is a Short Squeeze? Explained Simply
A short squeeze is a sharp price rise that forces shorts to close by buying, which pushes the price even higher.
Every short closes with a buy. As price rises, shorts hit their stops and liquidations, and those buys hit the market one after another. The rally feeds itself.
A squeeze usually has warning signs: a short-heavy long/short ratio, negative funding, and large short liquidation clusters above the price.
The mirror case is a long squeeze: a drop that flushes out overloaded longs.
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Frequently asked questions
How can you anticipate a short squeeze?
Look for short liquidation clusters above price and a short tilt in funding and positioning.
How long does a short squeeze last?
Usually minutes to hours, until most of the shorts are closed.