r/Shortsqueeze Mar 05 '25

Discussion Why Short Squeeze Stocks Struggle in a Bear Market

26 Upvotes

A lot of people get excited about short squeeze stocks because of their potential for massive gains in a short period. But when the overall market is struggling—like during a recession, rising interest rates, or a general bear market—these plays often struggle to take off. Here's why:

1. Liquidity Dries Up

Short squeezes require a ton of buying pressure to work. In a strong market, retail traders, hedge funds, and momentum chasers pour in, fueling the rally. But in a weak market, investors become more risk-averse. When people are pulling money out of stocks or holding cash, there aren’t enough buyers to squeeze shorts effectively.

2. Higher Borrowing Costs Hurt Speculative Plays

Many short squeeze targets are highly speculative, unprofitable companies. In a high-interest-rate environment or economic downturn, borrowing money becomes more expensive, making it harder for these companies to survive. If they struggle financially, short sellers feel even more confident holding their positions instead of panic-covering.

3. Market Sentiment Favors Fundamentals Over Hype

During bull markets, retail enthusiasm and hype can push a short squeeze stock to insane levels (GameStop, AMC, etc.). But when the market is bleeding, the “diamond hands” crowd starts looking for safer plays, and fewer people are willing to take the risk of chasing a squeeze. This shift in sentiment means the buying pressure needed to force shorts to cover just isn’t there.

4. Hedge Funds Are in Control

In bad markets, institutions and hedge funds are often better positioned to dictate stock movement. They have the resources to withstand pressure, averaging into their short positions instead of getting squeezed out. Retail traders, on the other hand, tend to have weaker hands in rough markets, leading to sell-offs that further suppress a potential squeeze.

Final Thoughts

Short squeezes thrive on momentum, liquidity, and retail enthusiasm—all of which are harder to come by in a bad market. While a short squeeze can still technically happen in a downturn, it’s far less likely, and any spikes are often met with aggressive selling. If you’re looking at squeeze plays, understanding the broader market conditions is just as important as the short interest data.


r/Shortsqueeze 16h ago

Announcement Since the market is going haywire....

33 Upvotes

.... we are too!

For the next <timespan> we have lifted posting restrictions. Anyone is allowed to post and comment on anything now, regardless of karma, verification, or account age.

We noticed things getting a bit stale in here, so let's open her up.

Please note that 5 reports will remove anything from the subreddit automatically, so use this and downvotes to help filter content for others. Thanks!


r/Shortsqueeze 11m ago

Bullish🐂 $FMTO 2025 MONSTER PLAY …………….

Upvotes

Low float ALERT STARTING TO SQUEEZE STILL HAS MORE ROOM TO RUN


r/Shortsqueeze 5h ago

💣NEW Fucking Squeeze Play KSS has now gained my interest

4 Upvotes

I saw the steep price decline and started doing some digging. Here’s what I found:

Shares outstanding 111.32M

Free float 107.75M

Short interest 49M (as of 3/14/25 and other sources stating more than 50% of the float is short)

Institutional ownership 117.6M

Stock price is the lowest it’s been since the late 90s

New CEO with plans to restructure the company, closing 27 underperforming stores and a fulfillment center, and laying off 10% of corporate staff

I wasn’t going to make this post because I’ve been burned on bed bath and beyond, and this looks like it’s headed that same direction, BUT…

I took a look at the options chain and the OI is primed for a gamma ramp. Over half of the free float is written in calls. There are two strikes in particular that caught my eye: $15 and $20 January 16th 2026

Someone, on April 4th, bought numerous blocks of 500 on both strikes throughout the day. Premium paid estimated at $250,000

I’ll add the screen shots in the comments. Do some digging for yourself and let me know what you find.


r/Shortsqueeze 15h ago

💣NEW Fucking Squeeze Play LWLG — 30% short interest, real tech, and a commercial breakthrough. Perfect squeeze setup?

13 Upvotes

Just came across Lightwave Logic (NASDAQ: LWLG) — small-cap photonics company developing electro-optic polymers (next-gen data transmission tech). But here’s where it gets spicy:

~30% short interest, very low float

First commercial license signed with guaranteed royalties

Breakthrough results at 1310nm (key wavelength for AI/data centers)

Zero debt, real IP portfolio, and tons of retail interest building quietly

This thing's been heavily shorted for months — possibly due to disbelief around their tech. But they just delivered on a major milestone. Not saying “MOASS” — but if buying pressure picks up and volume returns, this has all the ingredients of a clean squeeze setup.

Anyone else tracking this? Would love to hear thoughts from the squeeze hunters here


r/Shortsqueeze 15h ago

Bullish🐂 Uvxy to 90+ this week. It was already shorted heavy,

9 Upvotes

Borrow fee rate doubled today while the market was dropping.

The vix will act as a sympathy play

I rarely post on here these days unless I’m sure of something…


r/Shortsqueeze 22h ago

Discussion A $1 trillion defense budget? Trump, Hegseth say it's happening - Breaking Defense

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29 Upvotes

US Defense stocks looking mighty nice right now.

CTM Castellum 🫡


r/Shortsqueeze 15h ago

Question❓ Can AEHR squeeze in this environment?

6 Upvotes

Promising earnings call, low debt, low volume, 24% short interest.


r/Shortsqueeze 11h ago

News Actelis Networks Secures New Order to Modernize Orange County's Traffic Infrastructure (NASDAQ: ASNS)

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2 Upvotes

r/Shortsqueeze 13h ago

Discussion A small question to get an idea of what type of skills a trader/investor needs?

2 Upvotes

Just imagine that you have a human-like robot(not bots) with zero knowledge about the stock market, and you want that robot to trade on its own on your behalf; what skills do you think the robot needs to perform the best in the market?

What skills and knowledge do you want the robot to acquire in order to become a legendary trader/investor even when markets are against everyone? (From a newbie to Top 10%)


r/Shortsqueeze 22h ago

Data💾 Reddit Ticker Mentions - APR.08.2025 - $TSLA, $BURU, $NWTG, $GME, $QQQ, $AREB, $ILLR, $VVPR, $SQQQ, $DMN

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6 Upvotes

r/Shortsqueeze 21h ago

Discussion SOBR did it (up 42% today). Not sure what the catalyst was.

5 Upvotes

I bought some a month ago bc of this sub and just sold it. Aaa


r/Shortsqueeze 22h ago

DD🧑‍💼 SqueezeFinder - April 8th 2025

4 Upvotes

Good morning, SqueezeFinders!

The broader market is at the point where the $QQQ tech index has lost just about all medium-term bullish support levels, but managed to hold onto 400 (402.39 intraday) just barely after having touched 398 in the very early hours of Monday’s extended hours trading. Bears continue to maintain a stranglehold of the broader market as tariffs continue to cause fear with investors, and concerns about inflation and interest rates loom. The only plausible reason we didn’t just fall through the floor at 400 yesterday was thanks to a rumor that Trump was going to be delaying the tariffs by 90 days, which caused the $QQQ tech index to ramp 10% intraday from 402.39 to 443.14 before settling and closing at 423.69. At this point, any positive news will come unexpectedly and unanticipated, so keep your eyes on news feeds and economic data releases in case any sudden optimism arises. The main levels we need to watch are supports at 420, 415, and 400 or more pain could bring us to test the 400 long-term pivot level quickly, whereas resistance levels are at 440, 443, 450, 460, 466, 480, and lastly the 200 day moving average at 492 (which would require a 16.1% rally to reclaim). Regardless of broader market sentiment, you can locate relative on the live watchlist by tapping/clicking on “Price” column header to sort the watchlist in descending order of top gainer.

Today's economic data releases are:

🇺🇸 EIA Short-term Energy Outlook @ 12PM ET
🇺🇸 3Y Note Auction @ 1PM ET
🇺🇸 FOMC Member Daly Speaks @ 2PM ET
🇺🇸 API Weekly Crude Oil Stock @ 4:30PM ET

📙Breakdown point: BELOW this price, the move will lose momentum significantly in the short-term, as shorts will gain confidence encouraging them to short more. Reducing probability of a squeeze without a catalyst.

📙Breakout point: ABOVE this price, the move will gain momentum significantly in the short-term, as shorts losses will increase pressuring them to cover. Increasing the probability of a squeeze occurring, especially if with a catalyst.

  1. $CLIK
    Squeezability Score: 58%
    Juice Target: 3.7
    Confidence: 🍊 🍊
    Price: 2.85 (+2.89%)
    Breakdown point: 2.3
    Breakout point: 3.4
    Mentions (30D): 0 🆕
    Event/Condition: Company recently announced acquisition of leading Nursing Care Competitor, Strengthening company’s position in the Healthcare HR sector; No Financial terms disclosed + CEO recently said he continues to expect “high demand” for HR outsourcing services + Recent IPO with potentially imminent cup & handle playing out on daily chart with major breakout over 4.4.

  2. $BMGL
    Squeezability Score: 50%
    Juice Target: 10.3
    Confidence: 🍊 🍊
    Price: 5.15 (-6.23%)
    Breakdown point: 4.8
    Breakout point: 5.5
    Mentions (30D): 2
    Event/Condition: Attempting to breakout to new all-time high + Consistent demonstrative relative strength during market bloodbath + No news separate from having successfully closed IPO for net proceeds of $8.82M on March 3rd, 2025.

To gain access to all our cutting-edge research tools, live watchlists, alerts, and more: http://www.squeeze-finder.com/subscribe

HINT: Use code RDDT for a free week!


r/Shortsqueeze 1d ago

Bullish🐂 $CRSP Timing is everything. With the technology brining back Dire wolves and treating rare diseases and cancer and diabetes and $2B in cash

4 Upvotes

Crispr therapeutics has already an approved product to treat sickle cell and $2B is cash same as the market cap. Today will be the day to make the short buckle and bend the knee. With the Time’s front page cover on Crispr technology and investor presentation today. Let’s take this up by 50%.


r/Shortsqueeze 1d ago

News Gold Resource Year-End Earnings: CEO and Executive Team to Present 2024 Financial Results Wednesday April 9th

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2 Upvotes

r/Shortsqueeze 1d ago

Bullish🐂 Keep an eye on BYND for this week!

4 Upvotes

Still 42% short interest on this one. When the market gets extremely volatile like it is now, you often see short stocks go up because of margin calls (GME, AMC, ect). This thing moved 8% on 200k volume today and looks like we double bottomed at 2.62. A pop over $3 and we could see $4 pretty quickly with a setup for much higher in the weeks to come.


r/Shortsqueeze 1d ago

Data💾 Reddit Ticker Mentions - APR.07.2025 - $LXRX, $BURU, $GME, $QQQ, $AREB, $ICCT, $ILLR, $NWTG, $NVDA, $AMD

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17 Upvotes

r/Shortsqueeze 1d ago

Data💾 $RIME Worth taking a look everyone.

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2 Upvotes

Current cycle : Small float, High CTB Anyone see potential here?


r/Shortsqueeze 1d ago

DD🧑‍💼 SqueezeFinder - April 7th 2025

3 Upvotes

Good morning, SqueezeFinders!

Overnight trading and futures are telling us that the misery of last week will perpetuate into today’s trading session. Some are expecting it to be comparable to Black Monday of 1987 when the market crashed so badly that circuit breakers halted trading to prevent too much carnage. China’s 34% retaliatory tariffs they announced on Friday will be fuel for the fear fire. The $QQQ tech index fought to hold 420 area on Friday, but overnight trading is basically saying we will soon be fighting to hold the 400 level (long-term directional pivot) before long. If we lose the 400 level, we could be headed toward next support liquidity test between 360-340. Ideally bulls can reverse course and reclaim gap between 450-440, then 460-466, then focus on resistance levels at 485, and lastly the 200 day moving average between 492-494. Until then, I would suggest continued extreme caution approaching squeeze candidates. Regardless of broader market conditions, you can sort the live watchlist in descending order of top gainer by tapping/clicking on the “Price” column header.

Today's economic data releases are:

🇺🇸 No major economic data releases scheduled today.

📙Breakdown point: BELOW this price, the move will lose momentum significantly in the short-term, as shorts will gain confidence encouraging them to short more. Reducing probability of a squeeze without a catalyst.

📙Breakout point: ABOVE this price, the move will gain momentum significantly in the short-term, as shorts losses will increase pressuring them to cover. Increasing the probability of a squeeze occurring, especially if with a catalyst.

  1. $BLUE
    Squeezability Score: 58%
    Juice Target: 14.1
    Confidence: 🍊 🍊
    Price: 4.95 (+1.2%)
    Breakdown point: 4.4
    Breakout point: 5.7
    Mentions (30D): 3
    Event/Condition: Huge rel vol ramp on higher unsolicited non-binding buyout offer from Ayrmid of $6.84/share ($110.5 million) if company can hit net sales milestone (otherwise will go private via Carlyle Group and SK Capital for $3/share) + New price target 🎯 of $8 from Barclays + Gap from 5.7 to 6.9 + XcellBio granted Bluebird Bio commercial license, got into supply agreement for use of company’s proprietary cell manufacturing technology, avatar.

  2. $BMGL
    Squeezability Score: 52%
    Juice Target: 10.3
    Confidence: 🍊 🍊
    Price: 5.49 (+3.6%)
    Breakdown point: 4.8
    Breakout point: 5.5
    Mentions (30D): 1
    Event/Condition: Attempting to breakout to new all-time high + Consistent demonstrative relative strength during market bloodbath + No news separate from having successfully closed IPO for net proceeds of $8.82M on March 3rd, 2025.

To gain access to all our cutting-edge research tools, live watchlists, alerts, and more: http://www.squeeze-finder.com/subscribe

HINT: Use code RDDT for a free week!


r/Shortsqueeze 1d ago

Technicals📈 Aurora Cannabis' [ACB] Gap Nearly Completely Filled

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0 Upvotes

r/Shortsqueeze 3d ago

Data💾 Reddit Ticker Mentions - APR.06.2025 - $LXRX, $BURU, $NVDA, $ICCT, $QQQ, $ILLR, $AREB, $GME, $AMD, $DMN

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25 Upvotes

r/Shortsqueeze 3d ago

Data💾 Updated list of upcoming catalysts for April 2025 in biotech and pharma

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37 Upvotes

r/Shortsqueeze 4d ago

Data💾 Reddit Ticker Mentions - APR.04.2025 - $NVDA, $LXRX, $BURU, $TSLA, $ILLR, $GME, $ICCT, $DMN, $COEP, $VVPR

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20 Upvotes

r/Shortsqueeze 4d ago

Bullish🐂 Abpro inc. $ABP amazing opportunity to get in before it is too late

4 Upvotes

Abpro inc. $ABP will be presenting their data soon. Stock is very oversold with very low volume. Lots of upside and potential. Backed and funded by celltrion! This will be a sneaky runner very soon! 🤑💵


r/Shortsqueeze 4d ago

Discussion $NRSN - NeuroSense Therapeutics to Present New Data from PrimeC's Phase 2b Trial in ALS at the Annual American Academy of Neurology Meeting (NASDAQ: NRSN)

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2 Upvotes

r/Shortsqueeze 5d ago

Bullish🐂 Gold Mine Strikes Big: 307% Resource Jump and Premium Grade Gold Found in Mexico

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8 Upvotes

r/Shortsqueeze 5d ago

Fundamentals📈 RZLV in the Trump Tariff Landscape

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4 Upvotes