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Regarding the recent market situation of FHE, there are several key points worth noting.
From the perspective of the market makers, the short position cost basis should be around 0.08. This also explains why, once the price drops below 0.08 or even probes 0.06, chasing short positions on the right side becomes a viable strategy—because continuous downward pressure allows market makers' short positions to quickly realize profits.
The entire market's positions were concentrated on the 15th and 16th, when prices surged, and now it has entered a phase of pure liquidity cleansing. It is especially important to be cautious that any contract holdings exceeding 5 times the principal are very likely to become liquidity prey for market makers.
Therefore, if you plan to open a position at this level of FHE, be sure to control your leverage. Going above 5x enters a dangerous zone. Risk management should always come first; even the best market conditions cannot withstand a liquidation caused by excessive leverage.