It all started last Sunday. A mysterious entity dumped $US350 million ($508 million) of a popular cyptocurrency called Terra, with that one trade overwhelming the market and sucking out liquidity.
The shock was so abrupt and traders so blindsided that Terra “broke the buck” and began falling. The coin was designed to track movement in the US dollar and provide safety in the volatile crypto world, but the selling broke the peg and panic ensued.
Jessica SierNorth Asia correspondentJessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com
Jonathan ShapiroSenior reporterJonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
