This round of shorting on IOST won—but it won at a pretty steep cost, as the funding rate burned down to annualized -2150%.
Over 24 hours, the three platforms were in sync: Binance down 16.16%, OKX down 15.46%, Bybit down 14.47%, with a low touching $0.00098. In theory, this should be a time when shorts can win easily.
But the rate is not quite right: Binance is currently at -0.2455%, with hourly settlement, annualized -2150%; Bybit is also negative, with annualized beyond -2580%, and the direction is the same. A negative funding rate means shorts have to pay to maintain their positions, showing that the people shorting are packed together, hard-fighting the fees. If shorts huddle together and the market rebounds, it’s most likely to trigger mass liquidation.
How long do you think this batch of shorts can hold out?
Real-time view: https://www.coinboss.com/funding-rate