The stock market might feel like it is range bound, but it has risen recently. Even a small gain can raise the chances of squeezes that can punish short sellers.
Betting on stock declines by borrowing shares and selling them, hoping to buy them back at a lower price, can yield big gains. But it carries some unique risks, including the danger that prices can rise unexpectedly—and substantially—as short sellers buy to close their bets. Such gains can force other short sellers to do the same, sending prices spiraling higher, as losses become too painful to bear.
Source: https://www.barrons.com/articles/coinbase-amc-gamestop-stocks-short-squeeze-f607ea75?siteid=yhoof2&yptr=yahoo