$KAIA is up 40% today.
If you only look at the price, all you can say is “it’s up.” But open the derivatives data panel, and you’ll see a set of numbers that’ll send a chill down your spine:
Funding rate: -0.222%/8h.
Annualized, shorts are paying longs about 0.67% in funding fees per day. For heavily leveraged short positions, the fees alone can eat into profits.
Even more unusual is the OI—it’s up 446% in 24 hours.
A sharp rise in OI + negative funding rates + a simultaneous price rally: this is a textbook “short squeeze” scenario. Shorts get trapped → they have to buy to close their positions → that buying pushes prices even higher → more shorts are forced to close. The cycle reinforces itself until new liquidity comes in.
For comparison, BTC was up just 1.7% that day, and ETH was up 2.4%. $KAIA surged 40% on its own. This isn’t a fundamentals-driven move; it’s a technical rally driven by derivatives positioning.
At the same time, ETH’s global long/short ratio was 2.93, showing that retail traders were heavily skewed long. In situations like this, if big players want to short, they often choose liquid coins with lots of retail traders, open short positions, and collect funding fees—but if they run into a negative-funding coin like KAIA, the shorts themselves could get liquidated first.
So here’s the question: how long can this rally last?
Watch to see whether the funding rate starts to narrow. If the negative rate quickly moves back toward 0, it means the shorts have given up and exited, leaving the rally without fuel. If it stays negative, that means some shorts are still holding on, while new longs keep collecting rent.
What do you think—is this the final stage of the short squeeze for $KAIA , or is there another round to come?
#KAIA #FuturesData
If you only look at the price, all you can say is “it’s up.” But open the derivatives data panel, and you’ll see a set of numbers that’ll send a chill down your spine:
Funding rate: -0.222%/8h.
Annualized, shorts are paying longs about 0.67% in funding fees per day. For heavily leveraged short positions, the fees alone can eat into profits.
Even more unusual is the OI—it’s up 446% in 24 hours.
A sharp rise in OI + negative funding rates + a simultaneous price rally: this is a textbook “short squeeze” scenario. Shorts get trapped → they have to buy to close their positions → that buying pushes prices even higher → more shorts are forced to close. The cycle reinforces itself until new liquidity comes in.
For comparison, BTC was up just 1.7% that day, and ETH was up 2.4%. $KAIA surged 40% on its own. This isn’t a fundamentals-driven move; it’s a technical rally driven by derivatives positioning.
At the same time, ETH’s global long/short ratio was 2.93, showing that retail traders were heavily skewed long. In situations like this, if big players want to short, they often choose liquid coins with lots of retail traders, open short positions, and collect funding fees—but if they run into a negative-funding coin like KAIA, the shorts themselves could get liquidated first.
So here’s the question: how long can this rally last?
Watch to see whether the funding rate starts to narrow. If the negative rate quickly moves back toward 0, it means the shorts have given up and exited, leaving the rally without fuel. If it stays negative, that means some shorts are still holding on, while new longs keep collecting rent.
What do you think—is this the final stage of the short squeeze for $KAIA , or is there another round to come?
#KAIA #FuturesData