Recently, I’ve noticed that some tokens are getting pretty hyped up in the Square, but I don’t touch them at all—they’re classic cash-grab schemes.

I’ve already figured out how these setups work: first, there’s a lightning-fast pump, with the candlestick shooting straight up in under a minute. By the time you react and try to get in, the price is already at its peak. At this point, a lot of people think about shorting to profit from the pullback, but as soon as you open a position, something feels off—the funding rate suddenly spikes to ridiculous levels.

The trickiest part comes next: the price does start to drop, but your account is still losing money. Why? Because the funding rate gets deducted every hour, and after 24 hours the fees alone can really bleed you dry. In the end, even if you got the direction right, you end up being the ATM.

These setups are designed specifically to fleece retail traders. It’s fine to watch the show, but if you’re thinking about throwing real money in? I’d strongly advise you to think twice.