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I'm referring to stocks that peaked like a mountain than crashed, but that weren't short squeezes. Is this Irrational Exuberance? If you know more examples, just edit this post please.

I know little about finance or statistics. Please simplify everything. Keep math to a minimum. All dates in 2021.

CAR (Avis). $171 on Nov 1 → $545 on Nov 2 → $300 on Nov 3.

LCID Lucid Group. $31 on Feb 11 → $58 on Feb 18 → $22 Mar 8.

KOSS. $6 on Jan 25 2021 → $64 on Jan 29 → $20 on Feb 2.
SECOND SPIKE IN 2021. $17 on May 24 → $40 on Jun 2 → $24 on June 10.

SAVA Cassava Sciences. $80 on July 16 → $135 on July 28 → $69 on July 30 → $122 on Aug 13 → $53 on Aug 30.

UONE Urban One. $7 on May 28 → $21 on June 14 → $8 on June 22. Other Buying Black stocks.

AMC's volatility happened over 30 days. But I thought to mention it here. $9 on May 7 2021 → $62 on June 2 → $36 on July 15. This CAN'T be a short squeeze because the GME Short Squeeze was in January 2021. Bears had 6 months of advance notice and warning not to be squeezed!

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  • So AMC can't be short squeeze because GME was short squeeze, and no one would ever ever hold a short position again? Why didn't the previous short squeeze prevent GME from getting squeezed?
    – D Stanley
    Nov 4, 2021 at 12:45
  • @DStanley I don't understand your comments, sorry. I meant the short volume couldn't get so big, because quants will notice it and stop shorting. I didn't know GME got squeezed twice?
    – user112742
    Nov 5, 2021 at 3:51
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    Can you explain why you think these couldn't have been short squeezes? Squeezes of all kinds have been routine since the beginning of time,they aren't a new invention of a bunch of guys on Reddit.
    – TooTea
    Nov 5, 2021 at 7:36
  • @cielo I meant the previous short squeeze on some other stock. I'm refuting your assertion that is "CAN'T be a short squeeze". Short squeezes have happened many times, so just because GME was short squeezed doens't mean that another short squeeze CAN'T happen. I'm not saying it IS, but you can't dismiss the possibility outright.
    – D Stanley
    Nov 5, 2021 at 13:12

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There are many causes of supply and demand shocks.

Gamma squeezes have been large factors, according to a Barclays that seeks to capitalize on the specific phenomenon. Gamma squeezes are more frequent simply because more people are aware of how to do them, the market has been susceptible to it for a long time.

You are correct that short squeezes would be a lesser impact, because short squeezes rely on a lack of liquidity, and gamma squeezes rely on the prevalence of liquidity as well as create liquidity. But they are not mutually exclusive and can both exacerbate each other.

Both of these take advantage of market microstructure (the underlying structure of the market game), and primarily delays. During a fast rally, it can be impossible to short shares due to delays in delivering shares for shorting, but as the delays end and catch up by the next business day (or two), the short selling can begin anew and increase the selling pressure causing large drops in price.

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Please simplify everything. Keep math to a minimum.

How's this: 2020 began a retail investors' frenzy in stocks, and most of your examples are darlings of Reddit's WallStreetBets forum.

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