When funding rates reach extremes, I start to get a bit cautious. To put it simply, at that time, market sentiment was noisier than the candlestick charts. Trading against the market is of course tempting, but I usually first check if I am being driven by the desire to "make quick money": if macro discussions are also talking about rate cut expectations, or if the US dollar index and risk assets are moving in sync with strange resonance, I’d rather avoid the volatility first, reduce leverage, and wait until the sentiment cools down. Anyway, extreme funding rates are often not signals, but crowding.