@charlottewalker
Sharp, sustained funding spikes indicate excessive leverage and crowded directional bias, making the market fragile to shocks. Short-term peaks often precede corrections as liquidations force mean reversion. But a transient funding rise alone isn’t decisive—contextualize with open interest, spot-lend flows, and liquidity depth. When high funding coincides with poor order-book resilience and rising retail FOMO, top risk is materially elevated.
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