Definition: http://www.investopedia.com/terms/s/shortsqueeze.asp#axzz2DcIWm6TW
DECK may be experiencing short squeeze. With 50% shorts, it is a stock that could face short squeeze. When it happens, more shorters get out and the stock rises higher. I am careful to buy stocks over 10% short. However, when it reaches over 40% and the company is not heading to bankruptcy like DECK, it could be a buy.
In addition, some hedge fund managers tell each other it is time to buy as the price of this stock has been driven down by shorts too low and too much. Of course, the retail investors lose out when they ride the wagon that is falling to the cliff. A case of greed and fear.
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