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$PIPPIN's recent market movement has once again played out the old routine. First, it slowly declines, attracting short-sellers to follow the trend. When the short positions have accumulated enough, a sudden reverse rally occurs, catching retail investors off guard and shaking them out. Afterwards, it transitions into a slow upward trend, gradually testing traders' patience and mental resilience.
The short sellers caught in the trap are having a tough time now: their liquidation losses are severe, holding on makes them afraid of further rises, and most importantly, they are being continuously drained by funding rates every day. In this passive situation, surrendering or holding on stubbornly are both torturous. This is the most classic baiting trap in the futures market, where retail investors often fall deeper and deeper step by step, only to find that it's too late to turn back when they finally realize what’s happening.