8/11/2023 0 Comments Short squeeze meaning![]() ![]() "I wouldn't be surprised if they keep doing it … it's like Occupy Wall Street Part 2. "These investors have access to information, they know which companies are heavily shorted and they're communicating with each other," Johnson said. Year to date, for the GameStop short sellers alone, the loss is at least $5 billion, according to S3 Research. In a nutshell: All the buying pushed up the prices, meaning the funds' bets were wrong and they've lost billions of dollars. It occurs when a security has a significant amount of short sellers, meaning lots of investors are betting on its price falling. Retail investors, led by those in the WallStreetBets Reddit chat room, have been piling into Gamestop, AMC Entertainment and other stocks that hedge funds were counting on going lower. A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradable security. ![]() Short sellers bet on the price of a stock decreasing, while regular. More from Personal Finance: Here's a decade-by-decade guide to retirement planning Why to be cautious before investing in cryptocurrency Here's a 12-month roadmap to financial wellness Short squeeze definition: A short squeeze is a rapid rise in a stock or security price. Investors with an opposite view can try to profit from a potential short. A high level of short interest is usually a bearish signal. "For my clients who want to short stocks, I tell them it's generally not a good idea," said certified financial planner Ivory Johnson, founder of Delancey Wealth Management in Washington. Short squeezes are most common in thinly traded securities as well as those where there is a large short interest, meaning a large number of the securities have been sold short. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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