What does short liquidation mean?

Short liquidation refers to the process of closing a short position in trading. When a trader shorts a security, they borrow and sell it with the expectation that its price will decline. If the price rises instead, the trader may face significant losses and may need to buy back the shares at a higher price to cover their position, resulting in a "liquidation." This occurs to prevent further losses and is often triggered when a trader's margin falls below a certain threshold.