Deliberate market manipulation combined with short positions
On Curve, one of the largest DeFi liquidity pools. Its users started to notice suspicious withdrawals.
Saturday, May 7 a whale dumped $84 million worth of UST
Monday at 11:45am EDT, $250,000 traded at a UST price of $0.77 on Kraken
Which begun to stabilize UST back into the 90s, to little to late.
Fear had set in and a liquidity cascade began.
Collapsing UST to $0.62 on some platforms
UST began to see BILLIONS in trading volume on just 500k work of UST.
Binance exchange soon halted LUNA withdrawals
2 billion worth of BTC was sold to stabilize UST according to Trust Nodes
Luna, UST’s treasury backing and burn token lost 8 billion on its market cap over the last 7 days down 60% this morning.