The negative fee rate phenomenon of DUSK deserves in-depth attention. Although the settlement cycle is set at 8 hours, it has never been shortened to 4 hours or even 1 hour, and there is a reason behind this. Currently, the spot price is being suppressed below the contract price, and during the rally phase, it is expected to reach the key level of 28, breaking through the monthly resistance zone.

The key lies in the extreme performance of the fee rate. When you see the fee rate flash to extreme negative values in a short period, don’t rush to blame retail short sellers. The real situation is that such extreme fluctuations only occur when large players are heavily building short positions. An extremely negative fee rate can be seen as a signal of the gathering of short-selling forces.

What’s next? Large players will use the decline in the spot price as an opportunity to close out the long positions accumulated during the previous rally, while holding a large number of short positions, waiting to be released. When the price drops, they can both realize the floating profits from before and cash out short-term gains by smashing the market. With this combination, the spot price falls, contracts are closed, and shorts profit—all three parties benefit. Once you understand this logic, you’ll realize that those seemingly random fluctuations in the market are actually part of a plan.