When the funding rate hits an extreme, the group starts saying "This wave is stable," but honestly, I’d rather see if everyone’s hands are already reaching in to take the hit. Extreme funding rates do seem like they're shouting "Counterparty is quick, come in," but actually jumping in to do the opposite isn’t necessarily comfortable; the worst part is when you’re right about the direction but get slapped around by swings, and in the end, fees plus slippage wear you out.

Right now, I prefer: either go in lightly as that out-of-group counterparty, or just hide and wait for the funding rate to cool down on its own. Those on-chain tagging tools have been criticized recently for being laggy and easily misled, so watching "what smart money is doing" is like looking at social media personas—trust too much, and it’s easy to get carried away. Anyway, I’d rather miss out than become emotional fuel.