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Investor disagreement and short-squeeze risk

Author

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  • Kim, Hyeonjun
  • Ryu, Doojin

Abstract

The existence of potential short-squeeze attackers and disagreements among informed short sellers increase short-squeeze risk and effective short-selling costs. Analyses of market-representative daily short-selling disclosure data show that short sellers actively mitigate short-squeeze risk, highlighting that disagreement-driven squeeze risk broadly shapes short-selling activities.

Suggested Citation

  • Kim, Hyeonjun & Ryu, Doojin, 2026. "Investor disagreement and short-squeeze risk," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612325026583
    DOI: 10.1016/j.frl.2025.109409
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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