Kohl’s Corp (NYSE:KSS) just delivered the kind of shock that forces traders to reach for the oxygen mask. KSS shares exploded more than 42% on Tuesday after the company flipped expectations with a surprise third quarter profit and raised full-year guidance, lighting up one of the market's most crowded short positions.

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With roughly 37% of the float shorted going into earnings, the result was a pure squeeze, violent, fast, and fueled by panic buying rather than calm conviction.

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