Rivers $LIGHT from $4.5 to $0.95 and refers to the "team carpet pull" operation. But the deep problem goes beyond the price; it relates to the funding rate.
LIGHT – Alpha
Price: $0.94089
Change: -75.47%
The funding rate currently +0.860204% every 4 hours, which is significantly abnormal. This means that long traders are paying huge fees to short traders just to keep their positions open. When the funding remains high like this, what is known as the "death spiral" forms: where the capital of buyers continuously runs out, while sellers make profits regardless of price movements.
In these conditions, even if the price stabilizes temporarily, long positions are in a structurally weak position. Liquidity is depleting quickly, confidence is collapsing, and any rebound is often sold into. A rise in positive funding after a sharp collapse often indicates traders trapped in long positions, not market strength.
This is a classic example of why funding rates are more important than narratives after a drop; when funding breaks, the price usually follows.