Traders betting against SKR paid a constant heavy fee to keep their positions open as the token price dropped from $0.024 to $0.022.
Imagine SKR is trading at around $0.024. Suddenly, an overwhelming majority of market participants want to bet that the price will fall, far outnumbering anyone willing to bet on an increase.
Over ten straight minutes, SKR price slid toward $0.022. Throughout this entire window, the fee that sellers had to pay remained locked at an unusually steep -0.18%.
In crypto derivatives, this mechanism is the funding rate. When it turns deeply negative, short sellers must pay cash directly to buyers just to keep their downward bets active.
Think of it like a steep entry fee to stay inside an overcrowded room. Sellers are so eager to bet on a drop that they are willing to bleed money every hour just to hold their place.
This pattern does not mean the price will keep falling. If the price nudges upward even slightly, these pressured sellers may rush to close their bets all at once, sparking a sudden rally.
Don't think negative funding guarantees a continued crash. Think of it as a boat tilted dangerously to one side, where any small wave could trigger a violent rebalance.