Avis Budget Group Inc. has seen its shares surge by over 150% in the past three weeks, primarily due to Pentwater Capital Management acquiring a 22% stake in the company. This acquisition has led to a short squeeze, as bearish investors, who had shorted about 43% of the tradeable shares, are now forced to buy back shares to cover their positions. The situation mirrors past short squeezes that caused significant market disruptions, such as the 2008 Volkswagen AG squeeze and the 2021 GameStop Corp. incident. Pentwater's stake acquisition and the subsequent price rise have made it increasingly difficult for short sellers to borrow shares, leading to skyrocketing borrowing costs. Avis operates over 10,000 locations in around 180 countries, and the rental-car sector has recently benefited from increased demand as travelers opt for road trips over flights due to airport chaos. While Deutsche Bank analysts note that Avis's core business shows momentum, they believe the recent price surge is mainly driven by the short squeeze, which is likely to continue influencing the stock's performance in the near future.