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๐Ÿ“š WHALE SCHOOL, Short Squeeze

When price drops, some traders open short positions. They borrow the asset, sell it, and plan to buy back cheaper.

The trap: if price moves UP instead, shorts have to buy immediately to cut losses. That buying pushes price up more. More shorts get squeezed. Price accelerates.

That's a short squeeze. It can be violent and fast.

Signs to watch: Negative funding rates (heavy short positioning). If price starts moving up, those shorts become rocket fuel.

nfa. dyor.

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