How a Short Squeeze Works
A plain-English walkthrough of short interest, buy-ins, and why prices can spike.
By Bellwize Staff · July 9, 2026

A short squeeze happens when traders who bet against a stock are forced to buy it back to cover their positions, adding buying pressure that pushes the price higher still.
Squeezes are volatile and hard to predict.
This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.