Worldcoin drops 10% as short sellers dominate – What happens next?

Worldcoin [$WLD] dropped 10% in the past day as perpetual market participants pushed the market toward the bearish side.

The decline comes just days after the team behind Worldcoin sold roughly 51.17 million $WLD units worth approximately $13.67 million over a 14-day window between the 25th of April and the 10th of May.

Now, perpetual traders are exerting fresh pressure on $WLD while Spot traders continue to accumulate the asset at a discount, exposing themselves to significant downside risk in the process.

Short sellers control $288.89 million in $WLD perpetual volume

Perpetual market investors have been at the center of the decline.

The Open Interest-Weighted Funding Rate, which measures the capital in the market against which side controls it, has flipped negative at a reading of -0.0286%.

This confirms that the majority of the $151 million sitting in the $WLD perpetual market is concentrated in short contracts, and recent price action has moved in their favor.

Trading volume has reinforced this, trending steeply bearish alongside the Funding Rate shift.

The Long/Short Ratio, which measures the distribution of perpetual volume between buyers and sellers, has hit 0.73, confirming short sellers control the majority of the $288.89 million in $WLD perpetual trading volume.

This positioning signals that short traders are confident $WLD will continue moving lower.

Long traders absorb $1.37 million in liquidations

Data confirms that short trader confidence has come at a direct cost to long traders, as liquidation figures show.

According to CoinGlass, total liquidations over the past 24 hours reached approximately $1.41 million as the decline escalated, with $1.37 million of those coming from long positions.

To put this in perspective, for every $10 the market liquidated from short positions, it liquidated roughly $480 from long positions—48 times more losses on the long side.

Beyond liquidations, investors withdrew another $9.33 million from the market, pushing Open Interest down to a new low.

A sustained outflow of capital at this scale typically signals that investors are losing confidence in the asset or view the market as too volatile for their risk appetite, prompting them to reduce their exposure.

Spot traders spend $5.54 million in a week

Spot traders are positioned to absorb the most impact from the perpetual market’s bearish dominance, even as they continue buying.

These investors have demonstrated consistent confidence, accumulating $WLD throughout the decline. Total spot purchases over the past 48 hours alone have reached $2.5 million.

While this reflects genuine accumulation interest, it also carries risk—particularly impermanent losses—given that perpetual traders currently dominate price direction and appear positioned to push $WLD lower.

On a weekly basis, spot traders have spent $5.54 million acquiring $WLD, the largest weekly spend recorded since the week beginning the 9th of February, 2026.

Final Summary

• Long liquidations reached $1.37 million—48 times the losses recorded by short traders in the past 24 hours.
• Spot traders have spent $2.5 million acquiring $WLD in the past 48 hours and $5.54 million over the past week.