$LAYER Let's review $layer, I have been stuck at a low position for two months now, during which there were two opportunities to break even, but due to a small position and the temptation for profit, I did not close my position.

Yesterday during the day, I suddenly noticed that the funding rate for layer started to turn negative. Most of the time before, it was positive because the market makers had held long positions, which is why the rate was still positive in the futures ratio on 3/7.

At that time, the negative rate was low, including Liangxi calling for shorts, speculating that there might be more people going short, which also showed in the liquidation map. So I had a hunch that the market makers might pull the price up to capture the liquidity above.

However, apart from blowing up Liangxi, they did not capture the liquidity above, and the negative rate has been maintained and started to rise.

From the deviation and changes in contract open interest and total value, it was found that the market makers are gradually closing their long positions, and a large unlock (12.5%) is expected on May 11.

By noon today, the change in total open interest combined with the negative rate directly resulted in -2%. The number of longs and shorts is gradually balancing, approaching the situation on 5/5, yet the rate is still -2%, and the ratio of open positions is relatively high in shorts, which almost confirms that the market makers are building a large number of short positions and are about to harvest.

Unlike OM, the market makers did not dump the price quickly. I feel that there are more people going short, so they want to use the illusion of a rebound at a -2% rate to force the shorts to exit. After all, most people are stuck, and the pressure of the -2% rate is too high.

Even I had the idea of hedging, but with Binance's new rules, it will later become -2% per hour, which will shorten the time for market makers to short and dump the price. Therefore, I would rather pay the rate than hedge.

Sure enough, once the rate passed, the market makers quickly dumped the price from 2.4 to 1.9, and my pending order was also filled.

The rules modified by Binance not only balance longs and shorts better but also allow market makers to dump the price faster, as the cost of washing the market to lure in more longs has increased significantly.

Including the subsequent futures trading volume of this coin will also be significantly reduced, as the risk of the hourly rate is high, and small positions can no longer withstand long-term holding.

The counterparty is your friend; those on the same side as you are the enemy.