I dont understand, I can see longs with the buys appearing but I don't see any huge sells with the kind of these shorts (+20K BTC), I just don't get it.
On Bitfinex, you can either shortsell and let the system to automatically take care about choosing the swap offer(s) with the lowest interest rate(s) available at the time (and optionally below a manually set interest rate limit) in the background or you can borrow BTC manually for later use (or return if you change your mind and decide not to sell the borrowed coins), effectively securing certain amount of coins for short selling on demand (you won't unexpectedly run out of coins to sell in the middle of the action).
A huge amount of unspent swap at high interest rate is dubious.
I guess either somebody tries to trick the legit short sellers to close their positions (due to the increased interest rates and the confusion about the overall long/short landscape), effectively causing or supporting a mini-pump, or somebody is getting ready to push the price down and/or mitigate a suspected mini-pump attempt.
Or it's all just piggy-backing. Somebody started to short and everybody followed until it went too far. May be somebody tried to encourage piggy-backing by borrowing but not spending the swap, just to force-close the resulting shorts later (jump back to no.1).
I am not sure but I am starting to get a little uncomfortable about my opened short position. But I am not panicking, yet.
