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?

Which stocks have had a short squeeze?

Many stocks have been subject to short squeezes, with the most recent being GameStop Corp. (NYSE: GME), Tesla, Inc. (NASDAQ: TSLA), and AMC Entertainment Holdings, Inc. (NYSE: AMC). However, in this article, we will take a look at the famous Volkswagen short squeeze that occurred in October 2008. What happened in the Volkswagen short squeeze?

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.

What is a short squeeze?

The short squeeze occurs when a relatively large number of traders hold short positions in a stock. When the stock price suddenly rises, the short sellers liquidate their positions to cut their losses.