What is a short squeeze?

A sharp price rise driven by forced buying: shorts get liquidated or close in a hurry, and their buy orders push the price even higher.

Closing a short means buying. When the price goes up, shorts with high leverage hit their liquidation price, their positions are closed with market buys, and the price climbs to the next cluster.

Squeezes are likely when many shorts are crowded close to the price: a deeply negative funding rate and large short clusters on the liquidation map are warning signs.

On HyperScan

HyperScan rates squeeze risk for each coin by how many shorts would be liquidated if the price rose by a few percent.