#StopLossStrategies Most traders are shouting, "I got liquidated!" while trading $FUN — so what’s actually going on beneath the surface?

If you’re keeping an eye on $FUN, here’s what you need to know:

The price action is heating up again, but the rally might not be as bullish as it looks. Let’s talk about the funding rate — it’s currently sitting at -2.00%, the max cap on Binance. That means short sellers are paying longs a hefty fee every two hours. Why? Because the market is overloaded with shorts, and the funding mechanism is trying to restore balance.

But here’s the twist:

Even with negative funding, shorts are still dominating according to the Long/Short Ratio — the majority are still betting against $FUN. However, the sharp decline in the short ratio from April 3rd to 5th signals that many shorts either got liquidated or closed out early. That shakeout could set the stage for a relief rally, but…