Will the courts ruling on illegal tariffs cause a market wide short squeeze ?

[Beachnutt]

The trump goons may have been short on stocks like apple, amazon, etc.. and were caught short when the ruling came down.
Short Squeeze market wide today perhaps ?
Short squeezes create a feedback loop where rising prices force shorts to cover, pushing prices even higher and triggering more covering. Historic examples include GameStop's 500% surge in 2021, Volkswagen's 400% increase in 2008, and the market-wide squeeze of April 2025 where the NASDAQ jumped 12% in a single day.

[elleng]

1. 'A market-wide short squeeze is an unusual and potentially impactful event

where a sharp increase in the price of many different stocks across various sectors forces a large number of short sellers to buy back their borrowed shares to limit their losses. This collective buying pressure can then cascade, driving stock prices even higher across the market, creating a reinforcing cycle.'

[lapfog_1]

2. is possible

but a lot of short sellers were already forced to buy ( and lose a lot of money ) by the announcement Monday on the suspension of EU tariff increase for 30 days.

However, I still expect a big bounce in the morning. I will be up at 6:30 my time to see how much.

When the tariff war started on "liberation day" I sold my shares of XXX company at 130 ( down from a high of 145 )... after a few rounds of tariff and TACO, I bought back in at 98... after market last night it was back to 140ish. I hope to see early morning trades at 150+, which would be a big move. If so, I will likely sell some, depending. That will make for a nice short term cap gain on the shares I bought at 98. Of course I will owe a lot of taxes on the gain... but I'll have a nice return on Donald being both a TACO and an idiot. Won't make up for what DOGE did to everyone, but I can send more money to my favorite pet rescue charities.

[Beachnutt]

4. I'm hoping the ruling caught the conman

and his goons short and they can't cover so unlimited loss.

[lapfog_1]

5. again it is possible

someone like MTG might have gotten caught.

But the billionaire insiders ( Trump buddies ) have smart people that do their trades for them... and most would have placed opposite options trades for the "just in case" scenarios. This limits their liability in cases of extreme market volatility.

The people that get really hurt are the smaller unsophisticated players.

Me... I'm too risk adverse to make such market bets. More of a buy and hold person... Sell when I need cash for something else.

[Beachnutt]

6. I'm right there with you

Not a short seller, just buy and hold.

[JohnSJ]

3. No doubt the sociopath will appeal the court of international trade, and most likely it will eventually

get to the Supreme Court, and no one knows what will happen with those group of clowns.

As for a short squeeze occurring I don't think the uncertainty is gone in the markets. Will trump obey the trade order? Will he appeal the order all the way to the SC, and can trump offset the tariff ruling with other draconian tools that might be available?

[Hugin]

7. There's a number of possible scenarios...

1. The Tangeranus doubles down ignoring the ruling. The M$M continues to only cover his side of the story dutifully playing their overly large role in this global pump-n-dump manipulation.

2. The markets rise. The Bloviating Potemkin President takes credit for some kind of double reverse four dimensional jujutsu. He blames Biden for how bad it has gotten. The cult eats it up with a ladle and the marginal are swayed raising his approval.

3. The rest of the World continues to do business without including the newest pariah nation. Forging stronger trade relationships and soft diplomacy. The US is left on the sidelines eating our moldering corn and reminiscing about how great we used to be.

4. Some combination of the previous three.