$ALPACA Air Force is gearing up to counter the shorts. It appears that a drop occurred last night through early morning, likely trapping short sellers. The target of 0.15 may now be off the table, and the next key area could form above 0.17.
The operator doesn’t seem to have much capital left. Although volume is decreasing, they could still gradually push the price up, trapping short sellers in different zones and maintaining a negative funding rate by adjusting the spot price. They might continue draining fees until the contract eventually gets delisted.
I'll pin this post and update with new insights as they come. Keep in mind: a negative funding rate doesn’t always mean short sellers are piling in. The operator can manipulate it if they hold enough spot assets—keeping the spot price above the contract price.
This is just my personal analysis, not financial advice. Let’s see how things unfold over the next few days. If a crash happens, it could turn out to be a win for many. Please share this post to spread awareness in case this scenario plays out, so others don’t end up taking unnecessary losses.
CryptoMarketCapBackTo$3T