JaneStreet
Terra (LUNA/UST) collapsed May 2022 due to its algorithmic stablecoin design. UST was pegged to $1 via arbitrage with LUNA, but Anchor protocol's subsidized 19.5% yields created fragility. May 7: large UST withdrawals from Anchor/Curve pools sparked depeg. Death spiral followed—selling UST minted trillions of LUNA, crashing its price to near zero. ~$40-50B wiped out.
Zerohedge's angle: Today Terraform's liquidator sued Jane Street alleging insider trading accelerated it. Claim: Terraform secretly pulled 150M UST from Curve3pool; Jane Street-linked wallet pulled 85M minutes later using nonpublic info from insiders. Jane Street denies, calls suit "baseless" & blames Terraform fraud.
