Overview

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the implications of UST’s collapse across the crypto and traditional financial markets whether Terra’s decline will lead to more regulation in the crypto industry A detailed timeline of Terra's journey from its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem to one of the biggest fails in crypto. Binance has officially confirmed that the LUNA and UST collapse wasn’t an accidental failureit was a deliberate attack! 😳 This shocking revelation has sent ripples through the 29 de sept. de 2025 In brief, the theory states that a crypto investor with a huge BTC short position dumped billions in UST to deliberately depeg it and force the Luna Foundation Guard TerraUSD (UST), once the fourth-largest stablecoin with an $18 billion market capitalization, crashed spectacularly. Within days, its value plummeted from $1 to mere While unconfirmed, there was likely a concentrated attack on Terra. Heavy shorting led to the foundation’s $BTC being worth less, which they had to sell to protect the today's attack on Terra-Luna-UST was deliberate and coordinated. Massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on When UST depegged from $1 on May 9, it set off a chain of events similar to a bank run, that eventually led to both UST and Luna’s catastrophic collapse. Several In emails sent exclusively to Forbes, asset manager Blackrock and hedge fund giant Citadel Securities denied trading UST with a Citadel insider, stating that the firm How did TerraUSD (UST) crash? We identify two traders that broke its peg, multiple defenses that slowed its decline, and the forces that drove it to collapse.

Was the Terra UST Crash a Deliberate Attack by Banks & Insiders? The Explosive Theory Unfolds

The TerraUSD (UST) collapse shook the crypto world. Once the fourth-largest stablecoin, boasting an $18 billion market capitalization, UST crashed spectacularly. But was it an accident? Or was the Terra UST crash a deliberate attack by banks and insiders? Binance has officially confirmed that the LUNA and UST collapse wasn’t an accidental failure – it was a deliberate attack! 😳 This shocking revelation has sent ripples through the crypto community and beyond.

Unraveling the Timeline: From South Korean Payments App to $60 Billion Ecosystem to Crypto's Biggest Fails

A detailed timeline of Terra's journey is crucial to understanding the potential motives behind a coordinated attack. From its underdog start as a payments app in South Korea to a $60 billion crypto ecosystem, Terra's rapid growth made it a target. The fall from grace was equally swift, culminating in one of the biggest fails in crypto. What events led to this downfall, and were they manipulated? The theory suggests a coordinated strike initiated around 29 de sept. de 2025.

The Theory: A Massive BTC Short and a Deliberate UST Depeg

In brief, the theory states that a crypto investor with a huge BTC short position dumped billions in UST to deliberately depeg it and force the Luna Foundation Guard (LFG) to sell its Bitcoin reserves. When UST depegged from $1 on May 9, it set off a chain of events similar to a bank run, that eventually led to both UST and Luna’s catastrophic collapse. Several sources point to a coordinated strategy. One account describes the today's attack on Terra-Luna-UST was deliberate and coordinated, involving a massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on LUNA. While unconfirmed, there was likely a concentrated attack on Terra. Heavy shorting led to the foundation’s $BTC being worth less, which they had to sell to protect the peg.

Blackrock and Citadel Deny Involvement

Amidst the speculation, emails sent exclusively to Forbes reveal asset manager Blackrock and hedge fund giant Citadel Securities denied trading UST with a Citadel insider, stating that the firm had no involvement in the events leading to the crash. However, questions remain about other potential actors.

How Did TerraUSD (UST) Crash? Identifying the Key Players and Forces

How did TerraUSD (UST) crash? We identify two traders that broke its peg, multiple defenses that slowed its decline, and the forces that drove it to collapse. Understanding these mechanics is crucial for determining whether the crash was the result of market forces or deliberate manipulation.

Implications for the Crypto and Traditional Financial Markets

The implications of UST’s collapse across the crypto and traditional financial markets are significant. The loss of billions of dollars shook investor confidence and highlighted the risks associated with algorithmic stablecoins. Furthermore, the event raised concerns about contagion and systemic risk within the broader financial system.

Will the Terra Collapse Lead to Increased Crypto Regulation?

Whether Terra’s decline will lead to more regulation in the crypto industry remains to be seen. The incident has undoubtedly fueled calls for greater oversight and regulatory clarity. Lawmakers and regulators are now grappling with how to balance innovation with consumer protection in the rapidly evolving crypto landscape. The debate is intensifying, and the future of crypto regulation hangs in the balance.