"The Chase Is On": Historic Short Squeeze Triggered By Biggest Buy-Program In History, And What Happens Next

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by Tyler Durden
Tuesday, Oct 18, 2022 - 10:11 AM

When when said on Sunday that another squeeze was coming - a carbon copy of what happened during Thursday's post-CPI immaculate reversal - we were right, but not even we had an idea how massive it would be.

As a reminder, over the weekend - in "Behind Friday's Market Massacre: A Huge Burst Of Hedge Funds Shorting, Setting Up Another Squeeze"- we were clear to warn readers that the exact same delta-squeeze cocktail that sparked a furious post-CPI meltup was very clear and quite present once again heading into Monday, and that another big squeeze was on deck, to wit:

... after the violent Thursday and Friday shake-out, technicals and positioning are virtually identical to where they were on Thursday morning when the market was so imbalanced even the worst possible news for risk - much higher inflation - sparked a dump which immediately transformed into a historic, intraday bear market rally. All else equal - absent  a nuke going off somewhere - Monday's action should be a carbon copy.