$H for H can take a look

In fact, many people who trade contracts do not understand the basic mechanisms of contracts. Let's discuss why the bears are the fuel, and give an example of how a setup like Alpaca is manipulated.

A setup like Alpaca, with a market value of only a few million at the bottom, allows the operator to control the circulating spot chips at a very low cost.

Before pulling the market, I only need to open a huge long position in the contract, and then start pulling the spot. As long as the retail investors' short positions significantly exceed my long positions, the funding rate from the bears will continuously be deducted for me. I use this funding rate to buy spot, which will push the contract price upwards. Each time a bear position is liquidated, it converts into new buy orders for the contract, and my previously opened long positions in the contract will earn more and more, and the funding rate I receive will also increase, which means the funds available to pull the spot will also increase.

Give me a tightly controlled spot market and infinite bears, I can manipulate it to create something like Nvidia.