$ALPACA Now when they call you to enter a short position, they are treating you as fuel!!!
Let's talk about why it's said that the air force is fuel,
A stock like Alpaca, which only has a market value of a few million at the bottom, can be tightly controlled by the fund at a very low cost.
Before the price increase, I just need to build a huge long position in contracts, then start pushing the spot price up. As long as the retail investors' short positions significantly exceed my long position, the funding rate charged to the air force will continuously flow to me. I use this funding rate to buy spot, which will push the contract price up. Every time a short position is liquidated, it will convert into new buying power for the contracts. My previously established long positions will keep making more and more profit, and the funding I receive will also keep increasing, which means that the funds available for pushing the spot price will keep growing.
Give me a tightly controlled spot market and unlimited short positions, so do you understand now?