What Are the Dangers of Short Selling?

Short squeezes, or borrowing someone's cows to sell them and then buying them back, is one of the many dangers short sellers have to confront when they are betting against companies. The so-called short squeeze can cover a lot of things, just like brain damage. If you short a stock at five, it could theoretically go to affinity or go to a thousand. Most people in general don't have the stomach for something that goes against them to that degree. So there's a lot of danger and risk to getting squeezed in people.