Last week, I had my student monitor $FHE . He saw a daily trading volume of over 40 million and thought shorting was safe.
As a result, he was jolted awake by a margin call in the middle of the night, losing 30,000 U. I checked the blockchain data and found that this coin had already entered a wash trading harvesting scheme.
The core point is that FHE's 40 million trading volume is a trap set for short sellers.
The wash trading methods are impossible to hide: a daily trading volume of 40 million but no real buying orders; a typical wash trade intended to lure retail investors into shorting.
Then, a violent surge leads to liquidation. I've seen similar operations three times, and each time after wash trading, there was a mandatory increase of over 30%.
The ability to rally is beyond imagination: this coin has no fundamental support, but the manipulators love to play “short squeeze.” After the first wash trade, it went straight from 0.04 to 0.165.
All short positions were liquidated. The funding rate superficially seems to show a “long cluster,” but in reality, it's just bait data—you think shorting is profitable, but it moves up until you can't hold on.
The funding rate is a confusing bullet: in the futures market, a high rate doesn't mean there's a real bullish trend.
It may be a “false impression” deliberately created by the manipulators. In that trade my student had, the rate showed a long-to-short ratio of 3 to 1.
He thought shorting was a sure win, but after being squeezed, he finally understood that this data was just “bait” created through wash trading.
There are too many traps in futures; preserving capital is more important than anything else.
For coins like FHE, the manipulators feast on retail investors who “impulsively short.” You think you see through the wash trading, but it uses an even harsher rally to slap you in the face.
I've had 23 students monitor it, and 8 who shorted got liquidated. The key lesson is simple: don’t trust “obvious opportunities.” There’s no “sure win” in a wash trading market.
Right now, FHE is still fluctuating in the wash trading range. Want to seize an opportunity?
Remember three points: don't short in wash trading markets, be cautious if the funding rate exceeds 2%, and run if you see a rally instead of holding your position. Capital is important; there will be more opportunities next time.
If you've also lost in FHE, don't become a “wash trading sacrifice” for the manipulators.
Remember, money is hard to earn in the futures market; preserving capital is the bottom line. Contact me proactively, and I'll teach you to turn real trading lessons into “pitfall avoidance” skills.
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