## $CLO Price Movement Observation: Bears Are Bleeding, Short Squeeze Continues

Currently, $CLO's market exhibits typical short squeeze characteristics. The price is trading around $0.8003, with a 24-hour increase of 11.98%. It seems like a moderate rise, but the underlying capital flow reveals the true intention—shorts are being forced to close.

First, compare liquidation data: shorts are liquidated for $2.60M, while longs are only $0.81M. The losses for shorts are more than three times those of longs. More importantly, the funding rate remains in the negative zone at **-0.6512%**, indicating that short sellers are continuously paying interest to long positions. Under this condition, shorts keep holding on stubbornly, increasing their pressure, and the risk of a second liquidation rises.

From the open interest (OI) perspective, it has increased by 43.63%. This is not a weak rebound caused by "pull and run," but rather leveraged funds continuously flowing in, following the upward price movement. The simultaneous expansion of volume and open interest suggests a certain level of consensus behind this rally.

## Structural and Strategic Framework

**Above**: The key is whether the $0.80 integer level can hold. If the price retraces but stays above this level, it indicates buying support is effective, and a dip to the $0.76-0.78 range could be used for low-cost entry.

**Below**: The main liquidity support is around $0.74. If the price breaks below and cannot recover quickly, it signals the end of the short squeeze, and stop-loss should be executed.

According to Wyckoff's cycle, we are currently in the **Markup phase**: volume continues to expand, and leveraged funds are chasing the rally, making it a good time to follow the trend. However, caution is advised—once the momentum of this squeeze dissipates and prices fall back quickly, do not chase high with heavy positions during the acceleration phase, as risks are hard to control.

**Real-time reference data**: Total long and short liquidations $3.41M | Long/short ratio 0.45 | Open interest increased by 43.63% compared to previous

What do you think? Can CLO squeeze out another round of short positions?