Definition of squeeze

1. tight money period, when loan money is scarce and interest rates are high, making borrowing difficult and expensive; also called a credit crunch.
2. any situation where increased costs cannot be passed on to customers in the form of higher prices.
3. See also short squeeze.

Finance: (1) tight money period, when loan money is scarce and interest rates are high, making borrowing difficult and expensive-also called a credit crunch; (2) any situation where increased costs cannot be passed on to customers in the form of higher prices.
Investments: situation when stocks or commodities futures start to move up in price, and investors who have sold short are forced to cover their short positions in order to avoid large losses. When done by many short sellers, this action is called a short squeeze. See also selling short; short position.