$FLOCK 24 hours surged 40.6%, with the price reaching 0.05804. The key fact is that the funding rate is negative (-0.00002404), indicating the market is in a short squeeze.
My view is: this round of gains was mainly driven by stop-loss orders from short sellers, rather than a new buying consensus. The negative funding rate forces shorts to pay to close positions, creating short-term price support. But the huge open interest (125 million) means highly leveraged positions are densely concentrated, and any pullback in price could trigger a chain of liquidations, quickly giving back the gains.
My view is: this round of gains was mainly driven by stop-loss orders from short sellers, rather than a new buying consensus. The negative funding rate forces shorts to pay to close positions, creating short-term price support. But the huge open interest (125 million) means highly leveraged positions are densely concentrated, and any pullback in price could trigger a chain of liquidations, quickly giving back the gains.