Source: https://mochatrade.com/learn/glossary/short-squeeze

# Short squeeze
URL: https://mochatrade.com/learn/glossary/short-squeeze
Last modified: 2026-10-17

A short squeeze is a fast rise forced by short sellers buying back to cap losses, which pushes the price higher and forces out the next ones. It happens when [the borrow runs out](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks); on futures the same fuel builds when [funds keep adding shorts while the index rises](https://mochatrade.com/blog/mocha-markets-weekly-12-oct), and [silver in 2021](https://mochatrade.com/learn) is the commodity version.

## Related terms

- Short selling: https://mochatrade.com/learn/glossary/short-selling
- Long and short position: https://mochatrade.com/learn/glossary/long-and-short-position
- Short interest: https://mochatrade.com/learn/glossary/short-interest
- Market maker: https://mochatrade.com/learn/glossary/market-maker
- Contango and backwardation: https://mochatrade.com/learn/glossary/contango-and-backwardation
- Contract rollover: https://mochatrade.com/learn/glossary/contract-rollover

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.