Crowded Long vs Funding Rate

A market condition in which an excessive proportion of leveraged participants are positioned long, typically indicated by a long/short ratio above 1.8 and an annualized funding rate above 30%; associated with elevated fragility as the pool of new buyers diminishes.

A periodic payment exchanged between long and short holders of a perpetual futures contract, calculated to keep the contract price anchored to the spot price; positive funding means longs pay shorts; negative funding means shorts pay longs; typically settled every 8 hours on major exchanges.