An understanding of short squeezes can help avoid their implications in the market.
They get trapped and rush to exit positions to try and recover their losses or evade impending losses.
Apart from the short squeeze, there is also another similar concept known as the long squeeze.
As explained earlier, the impact of short-sellers on the price of an asset leads to a short squeeze.
That said, both short and long squeezes frequently occur in Bitcoin markets.
That said, it is advisable to understand the market and the implications of a short squeeze before entering short positions, as it may lead to huge losses that can be detrimental in the long run.

Source - https://www.bsc.news/post/cryptonomics-short-squeeze-explained

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