Contract funding rate -1.61%: the most negative rate by absolute value among all contract tokens today. $ONG spot also rose 13.4%, to $0.05264.
-1.61% means that for people shorting $ONG , every 8 hours they must pay longs a cost equal to 1.61% of their position value. After three settlement periods, the funding-rate losses over 24 hours are close to 5%. If the $ONG price continues rising, the shorts’ unrealized losses must be counted separately as well.
Let’s run a hypothetical scenario: if the shorts can’t hold on, what happens next?
First, funding-rate pressure keeps building up. It’s currently -1.61%, settled every 8 hours. As the cost to short increases, the willingness to maintain short positions naturally decreases, and some shorts will actively cut losses.
Second, forced closing starts to appear. Closing a short is equivalent to buying, and concentrated liquidation can push the price up in a short time.
Third, price rallies trigger more stop-losses. Shorts typically place stop-loss orders above; once the price rises to a certain level, it triggers a chain reaction.
This is the basic structure of a short squeeze. Today, $ONG ’s high touched $0.062, which is also the most densely traded interval today and an estimated level around the shorts’ average entry cost. Before the close, there was no breakout to hold above—suggesting the shorts are still defending. But defending comes at a cost; each settlement period consumes their resolve.
At the moment it has pulled back to $0.0526. I’m watching whether $0.054 can be held. If it holds, a funding-rate-driven short squeeze could appear later today or tomorrow.
Need to make this clear: $ONG ’s daily trading volume is $2.24 million, and liquidity is relatively thin. Even small capital can cause large fluctuations. In this kind of market, the reference value of contract data is amplified and distorted, so judgments should be more conservative.
The above is a structural observation, not trading advice. But this type of structure has appeared in history—it’s worth recording, and verifying later.
-1.61% means that for people shorting $ONG , every 8 hours they must pay longs a cost equal to 1.61% of their position value. After three settlement periods, the funding-rate losses over 24 hours are close to 5%. If the $ONG price continues rising, the shorts’ unrealized losses must be counted separately as well.
Let’s run a hypothetical scenario: if the shorts can’t hold on, what happens next?
First, funding-rate pressure keeps building up. It’s currently -1.61%, settled every 8 hours. As the cost to short increases, the willingness to maintain short positions naturally decreases, and some shorts will actively cut losses.
Second, forced closing starts to appear. Closing a short is equivalent to buying, and concentrated liquidation can push the price up in a short time.
Third, price rallies trigger more stop-losses. Shorts typically place stop-loss orders above; once the price rises to a certain level, it triggers a chain reaction.
This is the basic structure of a short squeeze. Today, $ONG ’s high touched $0.062, which is also the most densely traded interval today and an estimated level around the shorts’ average entry cost. Before the close, there was no breakout to hold above—suggesting the shorts are still defending. But defending comes at a cost; each settlement period consumes their resolve.
At the moment it has pulled back to $0.0526. I’m watching whether $0.054 can be held. If it holds, a funding-rate-driven short squeeze could appear later today or tomorrow.
Need to make this clear: $ONG ’s daily trading volume is $2.24 million, and liquidity is relatively thin. Even small capital can cause large fluctuations. In this kind of market, the reference value of contract data is amplified and distorted, so judgments should be more conservative.
The above is a structural observation, not trading advice. But this type of structure has appeared in history—it’s worth recording, and verifying later.