Can a Series of Negative Funding Rate Payments Lead to a Forced Liquidation?

Yes, a series of negative funding rate payments can lead to a forced liquidation for a long position. Since the funding payment is deducted from the margin balance, a continuous stream of payments will erode the position's equity.

If the equity falls below the maintenance margin level, the position will be liquidated, even if the Mark Price of the contract has not moved significantly against the trader.