Those short sellers who still revel in green funding rates often fail to realize they have already stepped into a trap carefully designed by the main players. The seemingly stable oscillation cash machine is essentially just a countdown to a harvest.

Having been in this market for many years, I have seen too many traders' tragedies—winning countless times, only to be wiped out by a single misjudgment. The recent two months of range-bound oscillation are particularly typical; it has conditioned a large number of bears to reflexively short at certain points: short at the right time, take some profit and run, as if shorting at this level is a risk-free job. But the reality is far from that simple. This mechanized operation is exactly the scenario that the main players dream of—it makes your behavior predictable, and your risks multiply accordingly.

Let's break down the mechanism behind negative funding rates. Many people know that shorting requires paying fees, but they don't understand why. Simply put, negative funding rates are the market's way of forcing "correction." When short positions accumulate to a critical point, and the contract price stays below the spot price, the system forces shorts to pay longs. The goal is clear—force some shorts to exit and narrow the spread. The market is silently warning: the shorts are too crowded; someone needs to leave.

And the main players are precisely exploiting this mechanism. The two months of repeated oscillation are essentially about conditioning market participants. The Yuan theory has long revealed that the core of oscillating markets is the balance of bullish and bearish forces. But this balance never lasts forever. The real purpose of the main players maintaining the oscillation is to cultivate path dependence among traders. Every time you short at the upper boundary of the range, earning a tiny profit, thinking you are technically skilled and insightful, little do you know that the main players are quietly monitoring the distribution of short positions behind the scenes. Waiting for the right moment to strike decisively. When that time comes, the locked-in shorts will realize that every "perfect operation" they think they performed is actually helping the main players outline the bigger picture.