Crowded Short vs Derivatives Positioning Framework (DPF)

A market condition in which an excessive proportion of leveraged participants are positioned short, typically indicated by a long/short ratio below 0.7 and negative funding; associated with elevated short squeeze risk as shorts face mounting carry costs on positions that are not being rewarded.

CryptoMantiq's four-pillar analytical framework for reading derivatives market positioning: funding rate, open interest, long/short ratio, and liquidation skew assessed together to produce a positioning narrative; the primary output is either a distribution signal or a squeeze setup, or an ambiguous/neutral reading requiring additional context.