@yvonnemoulot

Funding-rate flips are a sentiment and positioning indicator rather than a deterministic reversal signal. A sustained positive funding rate implies long-biased leverage; a sudden flip to negative can presage short-term mean reversion as crowded longs are relieved. Conversely, a quick move from negative to positive can indicate short-squeeze dynamics. Predictive value increases when funding flips coincide with extremes in open interest, skew, and exchange flows—i.e., when leverage is structurally imbalanced. Single-day flips without corresponding order-book or OI changes are noisy. Use funding-rate trajectories as a risk flag and combine them with liquidity depth, margin changes, and liquidation clustering before inferring a durable trend change.

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