A short squeeze is a sharp rally caused by shorts being forced to buy back their positions. When price rises into a cluster of short liquidations, that forced buying pushes price higher, triggering more short liquidations in a cascade. Extremely negative funding and high open interest are classic squeeze fuel.
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FAQ
What is Short squeeze?
A short squeeze is a sharp rally caused by shorts being forced to buy back their positions. When price rises into a cluster of short liquidations, that forced buying pushes price higher, triggering more short liquidations in a cascade. Extremely negative funding and high open interest are classic squeeze fuel.