What's a Short Squeeze and Why Does It Happen?
schwab.com
When a stock suddenly experiences a dramatic climb, with or without good news, it's important to ask yourself, "Who would buy shares up here?" The answer is possibly someone who doesn't have enough money to hold on to a struggling short position any longer, or someone whose pain threshold has finally been crossed and is buying to stave off even greater losses.
Are you tempted to buy it only because everyone else is? It's important to always do your homework and remember it's never wise to go all in. A stock that's in a short squeeze may still have a long way to climb, but if you don't think the fundamentals support higher prices, then perhaps you should look elsewhere.