According to Jeff Dorman at crypto asset management firm Arca, the chaos may have already increased short pressure rather than easing it. Institutions and hedge funds uninterested in holding WAVES on its merits, he says, “are all probably scrambling right now to find a WAVES holder to get a borrow from [to enable shorting], but they are likely unsuccessful in doing so. The negative funding rate [for WAVES] on FTX, for example, is indicative of how little borrow there is, as those who want to short have resorted to selling perpetual futures.”
