Volkswagen short squeeze On 28 october 2008, the price of volkswagen Feb 15, 2022 · A short squeeze is a phenomenon in financial markets when prices rise sharply, forcing short sellers to close their trades. Sep 7, 2021 · The resulting short squeeze in Volkswagen's stock briefly made it the most valuable listed company in the world. Porsche orchestrated the biggest short squeeze in history at the time through clever trickery. The case intends to explain this apparent marketplace distortion using Swiss Finance Institute Research Paper Series N°17-64 Market Efficiency and Limits to Arbitrage: Evidence from the Volkswagen Short Squeeze Franklin Allen Imperial College Business School Marlene Haas Independent Eric Nowak Università della Svizzera italiana and Swiss Finance Institute Angel Tengulov Vanderbilt University and University of St. The options were purchased through the German branch of Maple Bank, a Canadian bank arm of Maple Financial Services (now defunct). These short sellers rushed to close out their positions when the market opened the following day in an effort to limit their losses, which resulted in the purchase of more stock and an Oct 30, 2021 · Volkswagen went through a short squeeze and briefly became the biggest company in the world. It's a great time to look back at the stock market short-selling Oct 30, 2008 · The result: instant short-squeeze. How VW Went To The Moon In 2008 Wall Street Millennial 334K subscribers Subscribed Dec 1, 2016 · On 28 October 2008 a short squeeze on Volkswagen stock propelled this car maker to become the world's most valuable company for a day. I put together a rough visualization of how the vw short squeeze played out in 2008 with 10 minute candlesticks. P. Dec 9, 2018 · Volkswagen Infinity Squeeze. Although the auto maker's prospects seemed dismal, the company's outlook suddenly reversed when Porsche revealed a controlling stake. Aug 31, 2022 · The perfect Vw Volkswagen Shortsqueeze Animated GIF for your conversation. In some cases, investors can profit from a short squeeze, but it comes with high Dec 21, 2023 · Much like the GameStop example, the Volkswagen short squeeze serves as a lesson on the potential risks and rewards associated with short squeezes. May 5, 2022 · Amidst the global financial crisis in 2008, Volkswagen, the German vehicle manufacturer, suffered a short squeeze at the hands of its business partner, Porsche. Aug 14, 2023 · The Volkswagen short squeeze was a historical event during the 2008 financial crisis, triggered by Porsche’s massive stake in the company. Following that, it took hedge funds several weeks to get back on track. As we have learned, that squeeze mysteriously coincided with the market crash BOTTOM: S&P500 in 2022, with the rug just about ready to be pulled on the market. The resulting short squeeze in Volkswagen’s stock briefly made it the most valuable listed company in the world. The aim of the The Volkswagen Short Squeeze organisational culture is to create a positive work culture, and to achieve this aim, the company is making continuous improvements. These short sellers rushed to close out their positions when the market opened the next day in an effort to limit their losses, which resulted in the purchase of more stock and an Oct 28, 2008 · Oct 28: Volkswagen short squeeze VW stock shot up as investors who had bet on a fall in its share price scrambled to cover losses on their short positions, says John Authers Jul 11, 2025 · The 2008 Volkswagen stock short squeeze remains a pivotal event in the annals of financial history, offering invaluable insights into market dynamics, investor behavior, and the intricate dance between corporate strategies and market forces. Jan 28, 2025 · Get more from InkBound on PatreonBy becoming a member, you'll instantly unlock access to 2,400 exclusive posts Short Squeeze (englisch squeeze: Knappheit, Engpass, Klemme) ist die Angebotsknappheit eines Wertpapiers (meist einer Aktie), das zuvor in großer Anzahl leerverkauft („geshortet“) wurde. Using hand-collected data we The Volkswagen (VW) short squeeze is a famous financial event that occurred in October 2008. In the stock market, a short squeeze is a rapid increase in . Volkswagen Short Squeeze by Derek Tinnin » Tue Oct 28, 2008 1:13 pm I don't normally pay attention to individual stocks, but the short squeeze with Volkswagen is quite amazing. Like 4chan found a Bloomberg Terminal. Sep 29, 2021 · The Volkswagen-Porsche Short Squeeze happened in the middle of the global financial crisis. These short sellers rushed to close out their positions when the market opened the next day in an effort to limit their losses, which resulted in the purchase of more stock and an Jun 8, 2024 · Our testing shows that a high short-interest float greater than 20% and a short-interest ratio (days to cover) over 19 days are the keys to finding potentially explosive short-squeeze stocks. In The short squeeze on Volkswagen was one of the most dramatic in history, with the company's market capitalization briefly surpassing that of ExxonMobil, making it the world's most valuable company at the time. The short squeeze, orchestrated in part by Porsche’s strategic manoeuvres, Nov 2, 2021 · The biggest short squeeze in history occurred in 2008 when Porsche embarked on an unexpected series of maneuvers that left it controlling a huge percentage of Volkswagen’s (VW) stock. The biggest short squeeze in Token Volkswagen Short Squeeze Solscan - Get your ad in the spotlight! 🌟 Book your slot today! Apr 13, 2023 · The short squeeze started on 26th October 2008, after Porsche announced that it had increased its stake in Volkswagen. VW momentarily became the most valuable publicly traded corporation in the world as a result. This has now been recorded as one of the largest short squeezes in modern trading history. This briefly made VW the most valuable listed company in the world. Oct 13, 2025 · For a brief moment, on October 28th, 2008, Frankfurt-based company Volkswagen (VW) saw its shares more than quadruple in two days. It was during the middle of the worst financial crisis since the Great Depression, and Volkswagen was increasingly being viewed as a potential bankruptcy candidate. Hello Apes, I wanted to take a few minutes to describe the events that led to the VW short squeeze, and how it relates to… What is a'short squeeze'? The term 'short squeeze' implies that traders with short positions are squeezed, forcing them to close their positions at undesirable prices and take on heavy losses due to a sudden and outrageous increase in stock price. The Volkswagen short squeeze remains one of the most dramatic events in recent stock market history, illustrating how market mechanics, investor psychology, Feb 2, 2021 · Volkswagen often comes to mind when investors try to find a short squeeze comparable to GameStop 's jaw-dropping spike last week. It was during the middle of the worst financial crisis since the Great Depression, and Volkswagen was increasingly being What is the Volkswagen Squeeze? The Volkswagen short squeeze occurred during the global financial crisis in 2008 after Porsche announced plans to increase shareholdings in VW. Using hand-collected data Volkswagen short squeeze: history and market context This article examines the likelihood of a Volkswagen short squeeze today, analysing recent data and revisiting the factors that enabled earlier squeezes. Dec 31, 2011 · When Porsche revealed this derivatives position, the resulting short squeeze caused heavy losses for funds who were forced to buy VW stock. This briefly Do you recall the Volkswagen short squeeze scandal from 2008? The company’s value was 58 percent lower than its peak value at the end of the four-day event. During the global financial crisis of 2008, something strange happened. During a global financial crisis, Porsche secretly Volkswagen Short Squeeze in 2008, Market Phenomena Explained Visit our parent company ’s site to find more information about volkswagen shares, familiarize yourself with our results, and get the latest news on volkswagen group. Generally speaking, it means that someone somewhere is blowing up their account. The key takeaways for beginners from these examples are: 544 votes, 58 comments. Back then, as most of the world was reeling from the great recession, Volkswagen became a target of short-sellers because of its high debt load as well as exposure to the credit and business cycles. Harriman engaged in a power struggle over the Northern Pacific Railway in May 1901. The truth is that there is meaningful risk even in ‘market neutral’ hedge fund strategies. In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. Aug 5, 2024 · A decade later, Volkswagen found itself at the heart of another significant short squeeze. The resulting short squeeze in VW’s stock briefly made it the most valuable listed company in the world. Porsche secretly acquired a large stake in Volkswagen, causing a shortage of shares for short sellers. Volkswagen short squeeze: history and market context This article examines the likelihood of a Volkswagen short squeeze today, analysing recent data and revisiting the factors that enabled earlier squeezes. This article provides a comprehensive overview of the historical context, the mechanics of the squeeze, and its profound implications for market participants and regulatory bodies. Finance journal article. Jul 14, 2021 · Everything you must know about short squeezes as an investor. After volkswagen’s peak on oct. We argue that this was a manipulation designed to save Porsche from insolvency and the German laws against this kind of abuse were not e ectively enforced. Only because so much Volkswagen stock (about 12. With that monster move, VW briefly became the biggest company in the world. Today, i break down the biggest short squeeze ever in history. By 2006, Porsche had announced that it wanted to boost its shareholdings of VW and did so by acquiring substantially more stock in the company, which, in turn, began pushing the share price higher. And it all began with a shocking declaration by competing automaker Porsche. In our paper, forthcoming in the Journal of Financial Economics, we argue that this was a manipulation designed to save Porsche from insolvency […] Mar 31, 2025 · The biggest short squeeze in history happened to Volkswagen stock in 2008. Gallen Market Efficiency and Limits to Arbitrage Feb 15, 2022 · A short squeeze is a phenomenon in financial markets when prices rise sharply, forcing short sellers to close their trades. Oct 28, 2008 · BERLIN — Volkswagen became the world's biggest company by market value after Porsche announced plans to raise its stake in the German carmaker to 75 percent, triggering demand from short-sellers Oct 8, 2012 · THE VOLKSWAGEN SHORT SQUEEZE Case Solution,THE VOLKSWAGEN SHORT SQUEEZE Case Analysis, THE VOLKSWAGEN SHORT SQUEEZE Case Study Solution, On 28 October 2008, the price of Volkswagen common shares surpassed EUR1,000. How much time did VW need to squeeze? In the same month thirteen years ago, the Frankfurt-listed shares of Volkswagen increased by more than four times in only two days, briefly elevating the German automaker to the position of most valuable firm on the planet. Volkswagen went through a short squeeze and briefly became the biggest company in the world. What Happened in the Volkswagen In October 2008, Volkswagen briefly became the most valuable company on Earth—worth more than Exxon, Apple, or any other giant at the time. The key takeaways for beginners from these examples are: Jul 2, 2025 · The Volkswagen short squeeze in 2008 was another dramatic event. 5 days ago · Volkswagen Short-sellers Were Caught In the Mother of All Short Squeezes Earlier This Week Volkswagen (briefly) became the most valuable company in the world on Tuesday, surging ahead of the likes of Exxon Mobil Corp. , General Electric, Microsoft and others. That left precious few shares available for anyone else. A finance tale of strategy, surprise, and staggering losse Abstract On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. Hill, J. The 2008 Volkswagen (VW) short squeeze stands as a prime example of this market event, unfolding during the global financial crisis in an unexpected and dramatic fashion. Things only kicked into gear when Porsche unexpectedly announced they'd increased their stake in VW to 74%. How they happen, how to spot them, and how to evaluate your risk. What happened? Volkswagen and Porsche have a long history of collaboration, and Porsche has constantly had a small interest in Volkswagen Short squeeze Chart showing the price movement and volume during the 2008 short squeeze of Volkswagen shares In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. That resulted in price retracement all the way back to pre-breakout levels. Although the events in the case did happen (the unusual stock price reaction), the May 4, 2021 · What was the biggest short squeeze in history? It was the Volkswagen short squeeze of 2008. The short interest was only ~12%. Dec 2, 2024 · The Volkswagen short squeeze reveals how even sure bets can unravel. I took a deeper dive into the mechanics of the VW squeeze and found this section particularly interesting: “Why the Volkswagen Short Squeeze Happened During the global financial crisis of 2008, something strange happened. Dec 21, 2023 · Much like the GameStop example, the Volkswagen short squeeze serves as a lesson on the potential risks and rewards associated with short squeezes. Combined with a 20% stake owned by another entity and the requirement for indexes that track the DAX to have a position in VW, there was less than 1% off the float left to trade Only because so much Volkswagen stock (about 12. Volkswagen closed at 210. This is the story of how the Porsche family seized control of Europe's largest automaker, Volkswagen Introduction The Volkswagen Short Squeeze is a large scnale company with many employees; the company treats its employees as an asset. Hit subscribe for more crazy financial tales, and tell us in the comments what blew your mind the most! 544 votes, 58 comments. Jan 27, 2021 · More than a decade after the short squeeze of VW stock, retail traders team up against hedge funds. Jan 27, 2021 · What is a short squeeze? In addition, read about two interesting examples of a short squeeze, Volkswagen (VW) and GameStop (GME). These short sellers rushed to close out their positions when the market opened the next day in an effort to limit their losses, which resulted in the purchase of more stock and an The Volkswagen short squeeze was caused by a number of events. In October of 2008, shares of Volkswagen more than quadrupled in two days, briefly making the German automaker the most valuable company in the world. The German state of Lower Saxony owns a 20 percent stake in VW, which it said it would not sell. In the four days following the stock’s peak on October 28, 2008, it fell 58%, and by September of that same year, the shares had Jul 23, 2007 · Did you know that at one point Volkswagen (VW) became the most valuable company in the world? It was a surprising event that caught virtually everyone off guard. 39 euros last week. The Volkswagen (VW) short squeeze is a famous financial event that occurred in October 2008. [13] [14] May 29, 2017 · We provide the first forensic academic study of the Porsche-VW squeeze and show that it significantly impeded price discovery and market efficiency. In October 2008, Volkswagen briefly became the most valuable company on Earth—worth more than Exxon, Apple, or any other giant at the time. In October 2008, Volkswagen saw the Frankfurt-listed shares gain 400% in two days which made it the biggest company in the world at the time. What is the largest short squeeze in Oct 1, 2021 · On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. This drove the share price higher. (sometimes referred to as volkswagen of america, abbreviated to vwoa), [2] is the north american operational headquarters, and subsidiary of. Nov 13, 2025 · Volkswagen short squeeze: history and market context This article examines the likelihood of a Volkswagen short squeeze today, analysing recent data and revisiting the factors that enabled earlier squeezes. Volkswagen AG’s stock on the Xetra DAX rose from 210. In 2008, Porsche secretly accumulated a large stake in Volkswagen, which led to a shortage of shares available for sale. But it wasn’t because of earnings, innovation, or a Volkswagen Short Squeeze Chart - 28, 2008, the shares fell 58% in four days, and a month later the stock was down 70% from its top, giving back most of the squeeze, according. It was also perhaps the earliest use of the term “Infinity Squeeze”. Aug 18, 2022 · The 2008 Volkswagen short squeeze was a period of time in which the price of Volkswagen AG shares rose rapidly. This event happened in the midst of the 2008 financial crisis. Within just two days, Volkswagen’s stock price soared to previously unimaginable heights, cementing its place as one of the most dramatic squeezes in financial history. 5 billion in market cap – easily making it the largest short squeeze in history. Oct 30, 2008 · Volkswagen shares were nearly halved after the controlling shareholder, Porsche, took steps to ease a squeeze on short sellers that more than quadrupled the stock in days. But what were the worst squeezes in history? Jan 5, 2025 · The Volkswagen short squeeze of 2008 stands as one of the most extraordinary episodes in financial trading history. Well, it’s a fascinating story that involves short sellers, hedge funds and a secret plan by the Porsche family to take Jan 29, 2021 · The Volkswagen short squeeze of 2008 briefly made Volkswagen the most valuable company in the world, topping at around $1,300. What transpired during the VW squeeze? Strange things happened during Dec 1, 2016 · On 28 October 2008 a short squeeze on Volkswagen stock propelled this car maker to become the world's most valuable company for a day. Nov 10, 2025 · Learn how short selling, secret deals, and a legendary short squeeze rocked Wall Street. Abstract The VW Short Squeeze: Market Dynamics Explained delves into a pivotal event that showcased the power of coordinated action and unexpected market forces. What happened during the short squeeze in 2008? On 28 October 2008, the price of Volkswagen common shares exceeded €1,000. Oct 1, 2021 · Our paper is the first detailed study of the Porsche-VW short squeeze to analyze (i) Porsche’s incentives to create the short squeeze, (ii) the extent to which market participants anticipated the short squeeze, and (iii) the microstructure effects of this event on market quality and price discovery, and as a result on market efficiency. Fees increased Jul 14, 2025 · Volkswagen short squeeze The Volkswagen (VOW) short squeeze of 2008 remains one of the largest and most dramatic examples of a large-cap stock move triggered by positioning rather than fundamentals. What was the peak of the short squeeze on VW stock? With a share price of over 1000 in October 2008, Volkswagen briefly held the title of most valuable corporation in the world. In the midst of the Great Financial Crisis of 2008, Volkswagen saw its shares skyrocket, reaching above EUR 1,000 and briefly becoming the most valuable company on the planet. On Monday, the stock surged, opening at 370 euros and closing at 511. Porsche SE, a holding company, owned a sizable portion of Volkswagen shares, and the German government also owned a sizable portion. [11] [12] At the time, Porsche CEO Wendelin Wiedeking was accused of market manipulation but was found not guilty by a Stuttgart court. On 28 october 2008, the price of volkswagen On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. Morgan, and E. Discover the biggest short squeezes in history, featuring examples like AMC, GameStop, Beyond Meat, Tesla, and Volkswagen. Soon, the news broke out that with Porsche’s increased stake in Volkswagen, only 6% of the Volkswagen shares were available for trading compared with the requirement of around 12% shares for covering outstanding short positions. In fact, we saw it in 2008 with Volkswagen stock. Oct 23, 2008 · At the time of the short-squeeze, it was thought that larger institutions like banks and hedge funds were the main traders in VW shares. S. Why did the VW squeeze happen? In 2008, when Porsche launched an unanticipated sequence of operations that resulted in it controlling a sizeable portion of Volkswagen’s (VW) stock, the largest short squeeze in history occurred. Feb 3, 2021 · The short squeeze isn't a new market phenomena. A "short squeeze" happens when the price of a heavily shorted stock rises sharply, forcing short sellers to buy shares to cover their positions, which drives the price even higher. The GameStop short squeeze lasted less than a month, even though the stock later rallied for several months after gaining popularity from the short squeeze. The Volkswagen short squeeze lasted for how long? James J. 85 to over 1000 in less than two days in October 2008 as a result of a short squeeze brought on by an attempted takeover by Porsche. On Tuesday, the stock Hedge funds lose $30 billion on VW infinity squeeze Volkswagen Infinity Squeeze. THE VOLKSWAGEN SHORT SQUEEZE Although the facts of the case did happen (the unusual reaction of stock prices), the scenario is purely hypothetical and illustrates the sequence of Oct 28, 2008 · BERLIN — Volkswagen became the world's biggest company by market value after Porsche announced plans to raise its stake in the German carmaker to 75 percent, triggering demand from short-sellers Oct 8, 2012 · THE VOLKSWAGEN SHORT SQUEEZE Case Solution,THE VOLKSWAGEN SHORT SQUEEZE Case Analysis, THE VOLKSWAGEN SHORT SQUEEZE Case Study Solution, On 28 October 2008, the price of Volkswagen common shares surpassed EUR1,000. Securities and Exchange Commission charged Philip Falcone with market manipulation in relation to a short squeeze on a series of high-yield bonds issued by MAAX Holdings. Using hand-collected data Apr 18, 2025 · The short squeeze moved a massive €253. Gallen Market Efficiency and Limits to Arbitrage THE VOLKSWAGEN SHORT SQUEEZE Although the facts of the case did happen (the unusual reaction of stock prices), the scenario is purely hypothetical and illustrates the sequence of Jun 17, 2024 · The Volkswagen short squeeze, one of the most popular in history, took about 31 trading days to climax. The legendary short squeeze onset by Porsche. 2 The Volkswagen short squeeze on 27–28 October 2008 was unprecedented in propelling a car maker to become the world’s most valuable company by market capitalization. Take a look at what defines a short squeeze, the causes of the dramatic price move and how you can find the next short squeeze. Pre and Post market data are generated from a random walk though the business hours candlesticks are from the actual event. 5%) was lent to short sellers at the time of the Porsche announcement was the Volkswagen short squeeze enabled. In 2008, when Porsche launched an unanticipated sequence of operations that resulted in it controlling a sizeable portion of Volkswagen’s (VW) stock, the largest short squeeze in history occurred. The biggest short squeeze in history occurred in 2008 when Porsche embarked on an unexpected series of maneuvers that left it controlling a huge percentage of Volkswagen's (VW) stock. How did the VW short squeeze turn out? They don’t last Jul 14, 2025 · Volkswagen short squeeze The Volkswagen (VOW) short squeeze of 2008 remains one of the largest and most dramatic examples of a large-cap stock move triggered by positioning rather than fundamentals. From Piggly Wiggly to GameStop, short squeezes have been making and breaking investors for a century. Jan 5, 2025 · The Volkswagen short squeeze of 2008 was monumental, setting records for both the speed and scale of its price surge. On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. Find out about it here. These limits to arbitrage in the form of short sale risks imply significant costs to the arbitrageurs involved. This video Volkswagen's Epic 93% Price Surge: The Ultimate Short Squeeze Story is one of the most dramatic events in stock market history. We argue that this was a manipulation designed to save Porsche from insolvency and the German laws against this kind of abuse were not effectively enforced. Master this explosive strategy and seize unique market opportunities. The short squeeze moved a massive €253. You might be asking, “How the heck does a capital-intensive automaker become the #1 company in the world?”. H. Volkswagen Short Squeeze Before the Gamestop, there was Volkswagen. Using hand-collected data we On 28 October 2008, the price of Volkswagen common shares exceeded 1,000 euros. The VW short squeeze is quite different to what we're seeing with GME. During a time of global economic turmoil, this unprecedented event catapulted Volkswagen’s stock price to jaw-dropping levels, briefly making it the most valuable company in the world. In 2012, the U. I study the mar… Short Squeeze to Infinity. A highly important foex guide. To hedge the calls it sold to Porsche (and the puts Porsche bought), Maple Learn how to spot and trade a short squeeze with examples like GamStop. Discover and Share the best GIFs on Tenor. 85 to over 1000 in less than two days in October 2008 as a result of a short squeeze brought on by a Porsche takeover attempt, briefly making it the most valuable corporation in the world. Using hand-collected data we Only because so much Volkswagen stock (about 12. Volkswagen was one of the biggest short squeezes in history, and we saw many other short squeezes in 2021 amid the meme-stock frenzy. The case aims to explain this apparent market distortion using rational arguments such as the tentative takeover of Volkswagen by Porsche and the role of derivatives, particularly delta hedging. Nov 3, 2021 · The biggest short squeeze in history happened in 2008 when Porsche embarked on an unexpected series of maneuvers that left it controlling a huge percentage of Volkswagen’s (VW) stock. I study the mar… Aug 16, 2020 · This in turn exerted increasing price pressure on VW’s stock and resulted in more than EUR 20 billion losses for investors that had entered into these short-sell trades. Abstract On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. May 24, 2023 · The Volkswagen short squeeze was a classic example of how rumors can sway the stock market and cause significant financial impacts on corporations and investors. It pushed Volkswagen stock to be the most valuable company in t Dive into the GameStop story, drawing parallels with Porsche's 2008 move on Volkswagen, where Reddit traders clash with Wall Street, resulting in a short squeeze, substantial hedge fund losses, and regulatory investigations. This forces short sellers to cover their short interest positions by buying actual shares of VWAGY, which in turn drives the price of the stock up even further. The resulting short squeeze in Volkswagen's stock brie y made it the most valuable listed company in the world. What Happened in the Volkswagen Sep 21, 2025 · How high did VW stock go during the squeeze? The Volkswagen short-squeeze was a unique occurrence on the market at the time. 15M subscribers in the wallstreetbets community. Markets worldwide were already reeling from the aftereffects of Lehman Brothers' collapse and the US's economic meltdown. The Volkswagen short squeeze: what led to it? In 2008, when Porsche launched an unanticipated sequence of operations that resulted in it controlling a sizeable portion of Volkswagen’s (VW) stock, the largest short squeeze in history occurred. Discover the epic battle between hedge funds and Porsche during the 2008 Volkswagen short squeeze. 2 billion, with a float of maybe €10 to 20 billion. The rise in vw’s stock price caused a short squeeze and turned out to be very advantageous to porsche. Top: S&P500 in 2008, with Volkswagen short squeeze superimposed. Jul 14, 2025 · Volkswagen short squeeze The Volkswagen (VOW) short squeeze of 2008 remains one of the largest and most dramatic examples of a large-cap stock move triggered by positioning rather than fundamentals. Foex article teaches a very powerful professional forex trading strategies that most foex traders fail to realise. : r/Superstonk Go to Superstonk r/Superstonk r/Superstonk The Volkswagen short squeeze of 2008 is one of the most dramatic events in financial history. When a short squeeze happens, the price of a heavily shorted stock unexpectedly rises, resulting in short sellers closing their positions, driving up the stock’s price even more. The company encourages communication, fairness, teamwork, risk-taking and creativity 633 votes, 298 comments. How much did VW short squeeze? The estimations of VW's short squeeze show a loss of $38 billion. [2] The rise in VW’s price, that the short squeeze caused, was extremely advantageous to Porsche. Sep 15, 2021 · On October 26, 2008, Porsche announced a largely unexpected takeover plan for Volkswagen (VW). Oct 31, 2025 · What is a Short Squeeze? Read the Short Squeeze definition here alongside trading strategies and case studies. A short squeeze occurs when demand has increased relative to supply because short sellers have to buy stock to cover their short positions. Third parties shorted Northern Pacific in a frenzied manner as a result of the Oct 31, 2018 · For instance a firm backed by Elliot Management, who were also caught in the short-squeeze, are financing litigation by a group of shareholders over the Volkswagen emissions scandal. It's a good example of what happens when too many investors lean in the same direction, resulting in the exact opposite of what they think should happen. Didn't the VW short squeeze start when Porsche announced they held Calls for the company adding 31% stake to their already 44%? The available shares to trade became 6%, while short interest was 13%. Analysis of the Volkswagen short squeeze in 2008 using regional stock price variations as a leading indicator. The October 2008 short squeeze on shares of Volkswagen AG has since been referred to as the “Mother of all Squeezes”. Prior to the short squeeze, VW’s market cap was a sizable €62. Porsche began accumulating VW shares around 2005, and gradually accumulated options (both long calls and short puts) between 2005-2008, with most of the options being bought through 2007. By the close of business on May 7, 1901, the two parties held over 94% of the shares of Northern Pacific that were still in circulation. Hello Apes, I wanted to take a few minutes to describe the events that led to the VW short squeeze, and how it relates to… The shares of Volkswagen AG on the Xetra DAX rose from 210. The 6 days ago · A short squeeze for Volkswagen occurs when it has a large amount of short interest and its stock increases in price. vgk ancnfb gvvmk avrki csxdjs wwpzwqpd tmtf eqlw fnqxoce gzmtylh fcusvt pohe yejtyf ixcnkpas fho