#DumpandDump
Why did ALPACA Token delist on Binance and the price went up?**
1. **Short Squeeze**
- After the news that Binance would delist ALPACA, short sellers opened short positions hoping that the price would drop.
- However, the price suddenly rose instead of falling, forcing them to buy to cover their short positions, which led to a higher price.
2. **Binance Funding Rate Change**
- Binance reduced the funding rate settlement of ALPACA futures from 4 hours to 1 hour and increased the funding cap from ±2% to ±4%.
- As a result, the price became too high to cover short positions, causing a squeeze.
3. **Token Supply Shock**
- Alpaca Finance canceled the 35 million ALPACA tokens that it was trying to issue to market makers.
- As a result, the token became scarce in the market and the price went up.
4. **Whale Manipulation**
- Whales deliberately created a short squeeze and bid up the price, causing short sellers to lose.
- This resulted in the liquidation of nearly $50M of short positions.
5. **Gamestop-Style Pump**
- Similar to the Gamestop short squeeze in 2021, retail traders bought ALPACA and pressured short sellers.
**Summary:**
Instead of ALPACA falling due to the Binance delisting, the price rose due to short squeeze, funding rate changes, supply shock, and whale manipulation. However, this rise was short-lived and could later fall.
