Roshansim17

Hong Kong's AI application stocks exhibited varied movements today. According to Jin10, Meitu (01357.HK) surged over 16%, while Kingsoft Cloud (03896.HK) rose more than 5%. Additionally, Zhixing Technology (01274.HK), Baidu (09888.HK), and Alibaba (09988.HK) each increased by over 3%. On the other hand, Wu Yi Shi Jie (06651.HK) fell more than 6%, with MicroPort Robotics (02252.HK) and Myfut (02556.HK) declining over 5.5%, and Xunce (03317.HK) dropping more than 4%.

The Firedancer team, responsible for developing the Solana validator client, has announced the production deployment of Firedancer 1.0 at the Solana Accelerate USA conference. According to Foresight News, this development emphasizes client diversification, reducing Solana's reliance on a single validator implementation. This approach aims to mitigate the risk of network disruptions caused by software vulnerabilities or performance bottlenecks in a single client.

Morgan Stanley plans to launch spot cryptocurrency trading on its wealth platform later this year. The financial institution is also expanding access to tokenized assets and ETF integration, as reported by Cointelegraph.

According to Decrypt, KelpDAO has publicly blamed LayerZero for a $292 million exploit that drained approximately 116,500 rsETH from a cross-chain bridge in April, attributing the breach to a compromise of LayerZero's verifier network RPC nodes and the use of a 1-of-1 DVN configuration that Kelp says LayerZero personnel approved without warning of its security risk. LayerZero disputes the characterisation, maintaining the configuration violated its recommended multi-verifier model. Kelp said it is migrating its rsETH cross-chain infrastructure to Chainlink's CCIP protocol. Separately, roughly $71 million in frozen exploit-linked funds on Arbitrum are the subject of litigation in a New York federal court. The exploit has been linked to North Korea's Lazarus Group.

According to Bloomberg, Strategy Inc. reported a Q1 loss and disclosed it holds 818,334 BTC valued at roughly $67 billion, even as Bitcoin recovered to around $80,000 from February lows that had halved the coin's price and sent Strategy shares sharply lower.
The firm's recovery has been underpinned by perpetual preferred shares — marketed under the "Stretch preferred" label to retail investors on platforms including Robinhood and Charles Schwab — which financed more than $4 billion in Bitcoin purchases in April alone. CEO Phong Le said on the earnings call that Strategy would consider selling Bitcoin if accretive to Bitcoin per share, marking a shift from its unconditional accumulation stance. Shares fell 4.3% in after-hours trading.

According to CoinDesk, lawyers representing North Korean terrorism victims filed a 30-page opposition brief in the Southern District of New York on Tuesday, reframing the April 18 rsETH exploit — which drained roughly $230 million from Aave — as fraud rather than theft. The legal distinction is critical: under U.S. law, fraudsters who obtain property through deception can acquire legal title to it. Attorneys also invoked the Terrorism Risk Insurance Act (TRIA), arguing federal anti-terrorism law supersedes Aave's state-law challenge. A Manhattan court hearing is scheduled for Wednesday, May 6. DeFi United's industry recovery fund has reached $327.95 million — more than four times the disputed $71 million.

According to Al Jazeera, U.S. President Donald Trump announced a temporary pause to "Project Freedom," the American military operation to escort stranded vessels through the Strait of Hormuz, citing requests from Pakistan and other countries and "great progress" toward a final agreement with Iran. Trump said the blockade on Iranian ports remains in effect. The pause comes as the UAE reported a second day of Iranian missile and drone attacks, a commercial ship was struck by an unknown projectile, and Iran's IRGC issued an expanded control map of the strait. Secretary of State Marco Rubio said U.S. offensive operations under "Operation Epic Fury" are complete, adding Iran "must pay a price" for attempting to control the waterway. The strait, through which roughly one-fifth of global energy supplies pass, has been sealed since late February, disrupting trade and pushing oil and fertiliser prices higher.

Let me take you back to April 2026.

Bitcoin was slipping under pressure, sentiment was ugly, and timelines were full of it’s over takes. You could feel the fear. Retail was leaning short harder than ever

But I wasn’t watching price
I was watching positioning

Funding rates had gone deeply negative. And when that happens, I don’t panic I get interested. Because negative funding means one thing: too many people are betting against the market. The crowd is leaning one way

And markets don’t reward consensus. They punish it. I was thinking who’s going to get trapped?

Turns out shorts!

THIS WAS NEVER A BULL RUN IT WAS A MECHANICAL TRAP

Funding rates are basically the cost of the party. When they’re negative, shorts are paying longs just to stay in the game. That tells you the room is full of people betting down. Now imagine price starts creeping up just enough to make shorts uncomfortable.

Then it pushes higher
Now they’re underwater

Then comes the real move forced buybacks, liquidations, panic exits. That’s your short squeeze. And that’s exactly what we got into early May.

Bitcoin ripped from the mid-$60Ks into the $70Ks and then slammed into $80K on May 4, 2026. Because shorts were getting obliterated.

And that distinction matters more than most people realize.
WHEN THE FUEL RUNS OUT
Here’s where it gets interesting.
After the squeeze did its job clearing out the shorts funding flipped positive. That’s the moment most people celebrate.
I don’t.
Because positive funding means the crowd has flipped. Now longs are paying shorts. Now everyone’s leaning bullish.
And here’s the problem
If the rally was driven by shorts getting squeezed, what happens when there are no more shorts left to squeeze?
Exactly! The fuel runs out. That’s why the $80K break was weak. Yeah, we touched it. Briefly. Headlines went wild. Liquidations spiked. But there was no follow-through and no sustained bid.
Price pulled back fast. Straight into that $73K–$75K zone. That’s not strength, that’s exhaustion.
WHY POSITIVE FUNDING MAKES ME NERVOUS RIGHT NOW
Let me simplify it for you.
When funding turns positive after a squeeze, it’s like everyone rushing to one side of a boat. At first, it’s fine. Then more people jump in. Then more and eventually the balance gets dangerous.
All it takes is one wave and the whole thing tilts the other way.
That’s where we are right now.
We’ve got positive funding, elevated open interest, and a rally that was largely driven by perp markets not spot demand.
DON’T GET REKT HERE
If you’re new, read this twice.
This is not the moment to chase. I know it feels bullish. I know you saw $80K prints. I know Twitter (X) is loud again. But entering fresh longs when funding is positive means you’re paying to be in the trade and possibly buying near a local top.
That’s how people get liquidated.
Instead:
1- Wait for the market to cool off
2- Let funding reset
3- Let the emotional crowd clear out
FOR THE VETERANS
Now for the guys who’ve been around. Funding flipped positive while OI stayed elevated. That’s not clean. Basis premiums haven’t expanded in a meaningful way either. CME futures aren’t screaming aggressive institutional participation. That tells me this move isn’t being led by strong spot conviction.
It’s leverage-driven.
And that opens the door for a regime shift. Because once the short squeeze ends, the next logical event is a long squeeze.
Especially if price stalls or pulls back while funding stays elevated. We’ve seen this exact sequence play out across cycles. Fast up. Everyone flips long.
HOW I’M THINKING ABOUT THIS
I’m not calling a top with certainty. But I’m definitely not chasing this. If we get continuation, I want to see it backed by real spot demand. Not just derivatives noise.
If we don’t?
Then I’m watching for cracks. Because when funding stays positive and price starts slipping that’s when things get violent in the opposite direction.
Stay sharp