Terra/LUNA Collapse

In May 2022, Terra's algorithmic stablecoin UST lost its dollar peg, triggering a death spiral between UST and its companion token LUNA. Within days, LUNA went from $80 to effectively zero. Over $40 billion in value was wiped out. Do Kwon's arrogant dismissals of critics ("I don't debate the poor") made the collapse even more visceral. The fallout was catastrophic — hedge fund Three Arrows Capital collapsed, lending platforms Celsius and Voyager went bankrupt, and the cascading failures ultimately contributed to FTX's implosion months later. GCR's short against LUNA became legendary. It was crypto's Lehman Brothers moment.