What is short squeeze that triggered Infosys ADR trading halt on NYSE — Explained

Trading in Infosys’ American Depository Receipts (ADRs) on the New York Stock Exchange (NYSE) was briefly halted on Friday (December 19) after the stock surged nearly 40% in early trading, an unusually sharp move for a large-cap IT services company with no company-specific announcement.

Market participants say the sudden spike was driven by a short squeeze, a technical market event that forced traders betting against the stock to rapidly buy shares, pushing prices sharply higher.