For perpetual-futures traders, the cost is not only the lost margin but also the funding swings that follow. As shorts are squeezed, funding rates can flip sharply positive, raising the cost of holding long positions and seeding the conditions for the next flush in the opposite direction.
If the ongoing bounce holds will hinge on broader catalysts, including the geopolitical and macro forces that drove the original sell-off. A sustained move higher could keep squeezing late shorts, while a failure to hold recent gains would once again expose stretched longs.
