"Death Spiral" Short Squeeze Strategy (OI-Price Divergence)



Logic: Monitor the relationship between open interest (OI) and price. If the price is declining but open interest surges significantly, it indicates that many longs are stubbornly adding to their positions.

Operation: Do not bottom fish at this moment; wait for a volume-backed bearish candle to break through these longs' psychological defenses, triggering a chain of liquidations.

Execution: Enter the market to rebound when the price accelerates downward (Panic Sell) and OI begins to plummet (liquidation ends).
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