When the funding rate hits an extreme, the group starts shouting "counterparty."

I'm now more inclined to first see clearly who is being squeezed: is it the spot market that didn't keep up, or are perpetuals fighting themselves?
Many times, a high rate isn't about "guaranteed profit from shorting," but rather about amplified volatility; if the margin can't hold, even the right direction can be wiped out.

I usually have two options: either hide completely and earn a little in stablecoin pools, waiting for the rate to return to normal; or if I really want to take the counterparty side, I use small positions and add gradually, preferring to miss out than to push through stubbornly.
Honestly, the more exaggerated the rate, the more it resembles an emotional indicator, not a signal.

By the way, there's been a lot of noise lately about NFT royalties, which is actually similar to the rate: everyone wants "to take a little more," but as a result, liquidity runs away first... the market is the most realistic.
That's all for now.