/biz/ - Business & Finance

>live less than two miles from work
>drive a small, fuel-efficient car
>fill tank about once a month under standard usage
>mfw

So after spending the past few days digging through the transactions during the crash I figured out how and why it crashed. It wasn't some conspiracy it was that people didn't fully trust the peg.

>large quantities of stop losses were put on if de-pegged at certain intervals
>a large withdrawal dipped it just below the threshold
>stop losses engaged and dipped it further
>engaged more stop losses further losses
>LFG throws money at it
>market is in panic and places more stop losses
>market at the same time is jumping ship engaging more stop losses
>tanks to zero

Looks like the community inadvertently killed the crypto LMAO how many crypto stablecoins are at risk of this? This wasn't because of some major flaw in UST it was because the price was meant to be fixed at 1 so everyone put stop losses at 10% dip and more at 15% dip etcetera etcetera. This means all stablecoins are at risk of USTs fate. Obviously the burn mechanisms fucked over the LUNA investors.