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28 September 2011 @ 05:49 pm
Short Squeeze explained  
For hobbyist investor it's tempting to short some stocks which seem to be priced outrageously high.
In the past I've heard the term "Short Squeeze", but did not really pay attention.
This article demonstrates one of the risks of shorting:

How Porsche hacked the financial system and made a killing

P.S.: In the end Porshe lost:
http://www.zigwheels.com/news-features/news/volkswagen-acquires-porsche-holding-salzburg/7627/1
Porsche had sought to buy VW through complicated loan transactions that collapsed when the sports carmaker's liquidity dried up as a result of the credit crunch.

http://www.google.com/finance?q=Porsche+Holding