When the funding rate skyrockets to ridiculous levels, I usually ask myself first: Am I trading the market trend, or am I trading the emotions in the group? To put it simply, extreme funding rates = everyone huddled on the same side for warmth, the direction might be right, but if the formation is too tight, it’s easy to get hit with a "crowd tax." I tend to prefer two approaches: either reduce my position to avoid volatility and not fight it head-on; or take a small position against the trend, but only catch the emotional pullback, set a stop-loss, and don’t expect to catch the top or bottom. Recently, modular and DA layer narrative developers are having a blast, and the atmosphere where users look confused is very similar: the hotter the story, the easier the positions get emotional. Anyway, I only focus on one thing: is this funding rate rewarding the trend, or punishing follow-the- crowd… what about you?