What happened Shares of GrowGeneration (NASDAQ: GRWG) were jumping 11.7% higher as of 11:26 a.m. EDT on Wednesday. The hydroponic gardening retailer didn't announce any news, so what's behind its big gain? One possible reason is that short-sellers could be covering their positions. As of Sept. 15, 2020, nearly 13% of GrowGeneration's stock float was sold short. So what If we're seeing the makings of a short squeeze for GrowGeneration stock, the main unanswered question is: Why? On the surface, there doesn't appear to be any reason for investors to suddenly think the company's prospects are better than they were earlier this week. Image source: Getty Images. It's possible that short-sellers are afraid good news could be on the way for GrowGeneration. The company's CEO, Darren Lampert, is scheduled to participate in Jefferies' virtual conference panel discussing the cannabis ancillary market this afternoon. He'll also likely meet with institutional investors later today. Short-sellers could very well be worried that Lampert's remarks could provide a catalyst for the picks-and-shovels cannabis stock. There's one fly in the ointment with this theory, though. Lampert participated in another virtual conference panel yesterday afternoon and had opportunities to meet one-on-one with interested parties. GrowGeneration's shares didn't move very much on Tuesday. All we can know for sure is that something has caused investors to buy GrowGeneration stock in relatively heavy volumes today. It might or might not be related to Lampert's virtual conference participation. Even if today's gains don't reflect a short squeeze, should GrowGeneration's momentum continue, a short squeeze could be on the way. Now what One key thing for investors to watch with GrowGeneration is the U.S. elections on Nov. 3. Should Democrats regain control of the Senate and Democratic presidential nominee Joe Biden win the presidency, the prospects of cannabis law reform at the federal level should improve. That could translate to good news for GrowGeneration. Another important thing to look for with GrowGeneration is the company's third-quarter update, which will likely come later next month. If GrowGeneration's sales continue to soar, so will its share price. Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. And make no mistake – it is coming. Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks. Simply click here to get the full story now. Learn moreKeith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GrowGeneration. The Motley Fool has a disclosure policy.Source