AI Summary & Abstract • December 4, 2025
The Common Short Squeeze in Markets
By Milan Ji
"In the E-mini S&P 500 futures market, violent V-shaped reversals are driven by liquidity dynamics and dealer gamma hedging. When large sellers exhaust the order book, dealers' negative gamma forces them to aggressively buy futures to remain delta-neutral. This mechanical process, accelerated by short-dated options, fuels rapid market recoveries."