Why you might be misreading Open Interest?

Because OI shows positioning, not direction.
Open Interest tells you how many contracts are open -
price tells you who’s right.
Here’s how to read it properly:
Price ↑ + OI ↑
→ New positions entering (trend can continue, but crowding risk rises)
Price ↑ + OI ↓
→ Shorts closing (short squeeze, often less sustainable)
Price ↓ + OI ↑
→ New shorts entering (bearish pressure building)
Price ↓ + OI ↓
→ Longs getting liquidated (late-stage flush)
The mistake most traders make:
seeing rising OI and assuming strength.
Rising OI just means more exposure.
The edge comes from asking who is trapped when price moves next.