The iShares Russell 2000 ETF (IWM), which tracks small-cap stocks, experienced notable volatility over the past two days. Initially, the ETF showed mixed performance, with some observers noting a slight uptick while others reported a sharp decline in mid-cap stocks. By June 3, market participants identified that IWM had filled a recent gap and appeared to be on the verge of a breakout. Importantly, the ETF broke a seven-month downtrend, raising the possibility of a substantial short squeeze. Increased capital inflows into small-cap stocks were also observed, suggesting growing investor interest in this segment.