A rapid increase in the price of an asset that occurs when there is a shortage of assets to buy, forcing short-sellers to buy the asset to cover their positions.
A short squeeze is a phenomenon in financial markets where an asset's price rapidly increases, forcing short-sellers, who had bet on the price falling, to buy the asset to cover their positions. This surge in buying demand further drives up the price, creating a feedback loop. Short squeezes are often triggered by positive news, coordinated buying pressure, or a general market upturn that catches short-sellers off guard.