Solana‘s Dumpy.fun is launching a short-squeeze utility, “squeezy.lol,” on Aug. 27, allowing users to go long on heavily shorted tokens.
A new application that was initially developed to short memecoins is being released by the Solana protocol. This application will enable users to go long on tokens that are extensively shorted.
The Dumpy.fun protocol, which derives its name from the highly profitable Solana memecoin deployer pump.fun, announced in an Aug. 20 X post that it would roll out a short-squeeze utility named “squeezy.lol” on Aug. 27 of the following week.
The new tool would introduce a “new era of PVP,” which is the aggressive, player-versus-player trading manner that memecoins as an asset class promote, according to the shorting platform.
The Squeezy.lol platform will enable memecoin traders to “take the other side” of dumpy.entertain users with a novel utility known as the “squeeze explorer” that displays the most frequently shortened memecoins.
The platform stated that the new tool would enable investors to identify assets that are extensively shorted and provide traders with the opportunity to mobilise memecoin communities in order to initiate a “short squeeze.”
Dumpy.fun permits its users to short Solana memecoins with modest leverage. This may have been a lucrative opportunity for numerous traders in light of the precipitous decline in the price of Solana-based memecoins in recent weeks.
“Shorting” an asset, such as a cryptocurrency, involves speculators wagering that the price of the asset will decrease.
A short squeeze occurs when the price of an extensively shorted asset increases rapidly, necessitating that short sellers purchase additional shares of the asset to satisfy their cost basis.
The GameStop saga of 2021 is one of the most renowned examples of a short squeeze.
As the price of the company’s shares rallied over 1,500% in a month, thousands of retail traders compelled hedge funds to liquidate their short positions.
Currently, Dumpy.fun supports 11 memecoins, including Dogwifhat (WIF), Wen (WEN), and Bonk (BONK).
However, the company has announced that it will implement permissionless listings, which will enable users to short newly created tokens of their choosing.
