$WAL Shorts Haven’t Capitulated: Long/Short Ratio Stuck at 0.53, Another New High
When I wrote about the short squeeze in the previous update, $WAL was still at $0.0619. Since then, it traded sideways between $0.060 and $0.062 for three hours, then just pushed up to $0.0639. It’s up 67.9% over 24 hours, and trading volume—already at 275 million—continues to grow.
The long/short ratio has barely moved: it was 0.56 at 2 a.m. and is now 0.53. Shorts are still in the market. Based on the logic from the previous update, if shorts haven’t capitulated, the squeeze isn’t over—and that’s how new highs keep coming.
But one detail has changed: the funding rate has eased from -0.54% per 8 hours to -0.27%, and the perpetual discount has narrowed from 0.8% to 0.36%. Shorts are still around, but the “keep-alive fee” they’re paying has been cut in half. There are two possibilities: some shorts have quietly closed their positions at these highs, or longs have started taking profits in batches above $0.06, with supply and demand seeking a new balance.
So this rally probably isn’t over yet—it’s just shifted from the acceleration phase of a short squeeze to a phase of grinding down the shorts. $0.06 is now the pivot where longs and shorts trade positions. If it holds, shorts will keep paying, leaving room for further upside. A high-volume break below $0.06 and a move back under $0.055 would signal that longs are starting to exit and the squeeze rally is coming to an end.
When I wrote about the short squeeze in the previous update, $WAL was still at $0.0619. Since then, it traded sideways between $0.060 and $0.062 for three hours, then just pushed up to $0.0639. It’s up 67.9% over 24 hours, and trading volume—already at 275 million—continues to grow.
The long/short ratio has barely moved: it was 0.56 at 2 a.m. and is now 0.53. Shorts are still in the market. Based on the logic from the previous update, if shorts haven’t capitulated, the squeeze isn’t over—and that’s how new highs keep coming.
But one detail has changed: the funding rate has eased from -0.54% per 8 hours to -0.27%, and the perpetual discount has narrowed from 0.8% to 0.36%. Shorts are still around, but the “keep-alive fee” they’re paying has been cut in half. There are two possibilities: some shorts have quietly closed their positions at these highs, or longs have started taking profits in batches above $0.06, with supply and demand seeking a new balance.
So this rally probably isn’t over yet—it’s just shifted from the acceleration phase of a short squeeze to a phase of grinding down the shorts. $0.06 is now the pivot where longs and shorts trade positions. If it holds, shorts will keep paying, leaving room for further upside. A high-volume break below $0.06 and a move back under $0.055 would signal that longs are starting to exit and the squeeze rally is coming to an end.