What was the Volkswagen short squeeze of 2008?

The Volkswagen short squeeze of 2008 was epic. Only a few times in history has a stock rocketed that quickly and violently to jaw-dropping prices. In this article, we'll discuss what happened, explain what a short squeeze is, and how to search for potential short squeezes in the future. What is a short squeeze?

Did a Volkswagen stock reap the capital of a short squeeze?

Hedge funds and institutional investors have been shorting stocks for centuries both domestically and abroad. In 2008 — smack dab in the middle of the Great Recession — one stock reaped the capital of a short squeeze — Volkswagen. If the Volkswagen story tells us anything, it's that market manipulation can come from both sides of the table.

What happened to VW in 2008?

On October 26, 2008, Porsche announced a largely unexpected takeover plan for Volkswagen (VW). The resulting short squeeze in VW’s stock briefly made it the most valuable listed company in the world.

When did Porsche get a short squeeze?

The short squeeze started on 26th October 2008, after Porsche announced that it had increased its stake in Volkswagen. The worst of it only lasted a few days.