Did this high-frequency trading giant trigger the $40 billion Luna crash and the 2022 crypto winter?
Written by: 0xjs@Golden Finance
Do you remember the Luna/UST crash in May 2022, when the market cap exceeded $40 billion and collapsed within 5 days? (Refer to Golden Finance's previous report "Recap of the LUNA Brother's Crash Moment")
The Luna crash, combined with the subsequent collapse of Three Arrows Capital by Suzhu in the second half of 2022 and the bankruptcy of SBFFTX, directly triggered the crypto winter of 2022-2023.
While Luna's collapse was partly due to its mechanism design, the latest documents reveal that Wall Street high-frequency trading giant Jane Street is the hidden hand behind this financial game. They obtained insider information from Terraform Labs, triggered Luna's crisis, profited immensely, and exited unscathed.