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Let us say that a stock with a high level of short interest releases some unexpected good news. Buyers immediately enter the market and purchase shares based on the news, which drives the price up. Short sellers start to worry that they are going to have to buy the shares back at much higher prices so they start to cover their short positions by purchasing shares as well. This additional purchasing adds to the buying frenzy. This event is referred to as a short squeeze and it can result in very strong upward price moves depending on how many shares are shorted and the size of the float.
