tiescore
A short squeeze is when shorts are covering with a degree of panic, there is no mathematical perimeters to it.
chuck10580
Pier 1 Imports is a heavily shorted stock and had 4 times normal volume Friday. PPS was up over 40% at one point. Was that a "Short Squeeze?
zman492
That is a difficult question on answer. In general I would say that it is when the short interest ratio (days to cover) drops by 50% or more from a point in time when the short interest was at least 25% above average and during the same time period the price of the stock increase increases by at least two standard deviations based on its historical volatility.
That is not a textbook definition. That is my opinion. It is also is relatively worthless since short interest is not reported in a timely many. FINRA only requires brokerages to report short positions twice a month, and then takes about a week after the reports are in to get that information back to the exchanges. A short squeeze could be over before by the time the information is available to the public.
flyingtiggeruk
Well in singles and dating, a short covering means someone gets cold and so they need a short squeeze to warm up. In the financial world, however.... ask there. I’d move the question myself but on my phone I can’t.