A Short Squeeze occurs when a cryptocurrency that a lot of traders have bet against, that price will drop but instead starts going up suddenly. Therefore putting pressure on those who traded against the cryptocurrency (short sellers) to buy it back quickly to cut their losses.

I agree with you that short squeeze occurs when traders bet that price of a particular crypto currency would drop but everything gets opposite to that and it could be due to a positive news and a positive sentiment in market could cause rise in price that in turn cause short squeeze and it could be positive and could be negative that's why it is very interesting and exciting but before getting involved in any kind of this activity is very important to have thorough search.

I wish good luck and success to you in this engagement challenge