How Short Squeezes Start and Why They Can Drive Stocks So High

The recent short-squeeze phenomenon that sent stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) soaring left many investors scratching their heads and wondering how short squeezes work. What causes a short squeeze to start? And how high can stocks go during short squeezes?

In this Fool Live video clip recorded on Feb. 8, Fool.com contributor Matt Frankel, CFP, and Industry Focus host Jason Moser discuss the mechanics of a short squeeze and what investors should know about how they work.

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Source Fool.com