Potential for a short squeeze on a certain alt?

asked by u/rheadesai · 1d · 2 answers

Not naming any names, but I'm seeing a significant amount of open interest in shorts on a mid-cap alt with relatively low liquidity. Could be setting up for a violent short squeeze if the broader market holds or goes up. Keeping an eye on funding rates and spot buying pressure.

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Top answers

  • u/diya.joshi· 17 pts· 1d

    Interesting point. Low liquidity can definitely amplify moves. Are you seeing any catalysts that could trigger a squeeze, or just the high open interest?

  • u/emre_r· 4 pts· 18h

    While the setup sounds good, 'violent' moves can also go the other way. Be careful about chasing a squeeze without confirming a strong support or a shift in market sentiment for that alt.