Short squeeze (English: 'short squeeze') is a situation when the price increase of an asset is caused by an excessive accumulation of short positions, the closure of which creates additional demand for buying the asset and leads to further price growth.

Short squeezes are characterized by a rapid increase in the price of the asset, increased trading volume, and high volatility — this can lead to significant losses for traders who are short-selling.

To reduce the risks of falling into a short squeeze, it is advisable to use stop orders and hedging tools, as well as to employ low leverage.