The funding rate for contract $BIO has reached a terrifying -2%

It seems everyone is crazily shorting BIO

I estimate many beginners don't know what this funding rate means

Let me explain: a negative funding rate for perpetual contracts means that short traders need to pay fees to long traders. This situation usually occurs when there is a dominant short position in the market, and the exchange uses the funding rate mechanism to balance spot prices with contract prices. It also indicates that there are too many short sellers, and prices may be pushed up to liquidate short positions.