Why the recent short squeeze market comes from the GameFi sector's thinking Core logic: Clearing pressure of primary funds From the cessation of new project investments and second phase fundraising by @ ABCDELabs @ DujunX, it can be seen that many primary funds have performed poorly in the cryptocurrency market during this cycle. In the bull market of 2021-2022, the GameFi track was highly sought after due to its "Play to Earn" craze, with soaring valuations, attracting a large number of venture capitalists and first tier funds to heavily invest. However, the market in 2025 is no longer the same as before, and these funds are facing difficulties in performance and fundraising. The investment cycle of a first tier fund is usually 1-3 years. Looking back three years (2022), the GameFi project had a high valuation, but now these have been falsified and there are almost no buyers in the secondary market. Liquidation demand and liquidity dilemma Tier 1 funds and project parties hold a large amount of GameFi tokens and urgently need to exit to liquidate assets. However, the liquidity in the spot market has dried up, and direct selling can lead to a price collapse. What should I do? The answer is the perpetual contract market. The zero sum game characteristics of the futures market provide VC with an exit channel: by raising spot prices, it induces retail investors to short perpetual contracts, then triggers short clearing and stop loss, creating liquidity.