Squeezy market is a market where people get washed out both directions pretty much. Especially happens when there is a big consensus on the market and participants are positioned in the same direction. It's usually the moment when a lot of information is already priced in and expectations are overstretched. When you get a market event or eco release (or series of such events) which is against this consensus, you get an avalanche of position unwinds and price moves against the consensus position in search for "pain" triggering a lot of stops on the way. Many times after this happens you get a resumption of the original move as some people use the dip / stops triggered spike to get into the consensus trade (the ones who didn't participate in the previous move). Some people might do it a bit late though (i.e. not catching the spike, but only after the trend resumes) and therefore get bad entry levels, and many times it happens in a very event driven fashion (e.g. series of events/eco releases against the consensus triggering stops, followed by an event/eco release in next few days confirming the previous consensus trend) and it is driven by emotions where market participants chase the market...

https://www.forexfactory.com/showthread.php?p=8510205