How to Trade a Short Squeeze
As history has shown, squeezes demonstrate just how sensitive financial markets can be, from the Great Depression in the 1930s to GameStop and Silicon Valley Bank in the 21st century. A liquidity squeeze occurs when a financial event sparks concerns among financial institutions, such as banks, regarding the short-term availability of money. These concerns may cause banks to be more reluctant to lend out money within the interbank market. As a result, banks will often impose higher lending requirements in an effort [...]