how does short covering work 
short covering works by closing out a short position that an investor has made by buying back shares that were initially borrowed and sold when an investor shorts a stock they borrow shares from a stock lender and sell them on the market with the expectation of buying them back at a lower price in the future if the stock goes down the investor s short position generates a profit but if it goes up it results in a loss increased short covering has the potential to trigger a short squeeze and cause significant losses 