TL;DRLike the collapse of Terra, these types of death spirals can be explained by a sociological framework of Self-fulfilling Prophecy. The initial de-peg attacker announces to the world that Terra will collapse, and the attacker, the project, and the ecological participants, in their own game of limited rationality, have made this prophecy come true.Three conditions are required for a self-fulfilling prophecy: 1/ The cost of a Type II error is higher than that of a Type I error (i.e., the lo...