When funding rates are extreme, my first reaction isn't "Opportunity is here," but rather "Who's panicking?"

This thing is like a long line suddenly forming in front of a night market stall—it's not necessarily tempting; maybe someone is secretly raising the price behind the scenes to lure you in.

I generally categorize into two types: if the market sentiment is obviously being squeezed out (heavy liquidation vibes, a few big funds on the chain moving back and forth frequently), I tend to take the opposite side but with small positions, keeping the stop-loss visible.
I'd rather get knocked out than fight it head-on; if it looks like the market maker is feeding false signals and volatility starts to go wild, I just hide and wait until the rate returns to a "normal breathing" level.

Recently, I heard about some regions raising taxes and loosening or tightening regulations, which basically has a big impact on deposit and withdrawal expectations.
Everyone panics and loves leverage, making the funding rate fluctuate easily.
Anyway, I don't fall in love with emotions. When funding rates are extreme, I prefer to watch others fight for taxis:
You can wait for the next one, or go against the flow, but don’t stand in the gap of the car door.