Recall
When the lender demands the borrowed shares back at any moment.
Borrowed shares are on loan, and the lender can ask for them back at any time, for example because they want to sell. If you cannot find another lender, you must buy the shares in the market to return them, whatever the price is that day.
A recall is one of the two concentrated risks that a short seller carries, together with the squeeze. It is the reason the borrow fee exists: lenders are paid for the trouble, and short sellers pay for the right to a position that can be taken away from them.
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Where this word comes up
First needed in the log entry H-059 · Testing the shorting premium: what a rebalancing bug taught us.
From the same entry: Borrow fee, Crowded shorts, Decile, Delisted, Long-short portfolio, Rebalance, Short interest percentage, Short selling, Squeeze, t statistic, Universe.