Today, ONE (Harmony) handed a paid lesson to anyone chasing shorts.
In 24 hours, it fell 25.7%. Directionally, the shorts were right, but Binance perpetual funding rates were pushed to -0.42%, with settlements every 4 hours. Shorts have to pay 6 times a day, costing about 2.5%—which is like handing over one-tenth of their gains as “rent.”
Even more ruthless is the Gate—within 8 hours, it dropped -1.04%. Meanwhile, BTC funding rates are almost glued to the zero line, so all the leverage “gunpowder” across the entire market is stacked on a single coin: ONE.
Deep negative funding rate is a signal that shorts get squeezed to the point of explosion. After this kind of extreme situation, violent short covering is common. Even if the down move continues smoothly, if the short positions are too crowded, those who chase shorts could end up being harvested in a reversal.
Do you think ONE has hit the bottom?
Check in real time: https://www.coinboss.com/funding-rate