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You can look at short interest three ways:

Short interest indicates that the company is in trouble. Carefully research any company with high short interest before buying.

High short interest can cause a short "squeeze," as you described. But this only occurs if the price of the stock rises; a falling stock squeezes only those holding on margin. Thus, short interest increases the volatility, but does not inherently drive the price up.

Lastly, shorts have absolutely no long term effect on a stock. If you are thinking long term buy & hold, then I wouldn't really look at the data.
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