First Solar, which rallied sharply this week and is up over 72 percent year-to-date, is sending short sellers running for the exits, said CNBC's Jim Cramer, who explained why the stock has gained rapid favor in the market.
"There was a squeeze yesterday of unbelievable proportions—First Solar," Cramer said on "Squawk on the Street" Wednesday. "Now, this is a China story. What you realize is that the Chinese have walked away from solar."
Cramer reminded investors that there was a bankruptcy protection filing in March of a major Chinese solar manufacturer, Suntech Power Holdings. "First Solar has stepped into that vacuum with a low-cost solar module and it just dazzled people," he said.
Cramer added: "Next thing you know, this stock, which had been a free-fire zone for the shorts, becomes the squeeze of a lifetime. This is a fascinating play that probably is overdone, but First Solar was on everybody's lips."