Thread by @4484

ok here is how the $luna $ust attack was coordinated & executed. 🧵 (quoted from a friend)

- attacker OTC accumulated $1bn of UST
- borrowed $3bn in $btc
- spread around some fud about peg and bank runs
- dumped the fuck out of their $3bn $btc on market to trigger wider panic

- 10 min after LFG pulled some liquidity from curve in preparation for 4pool the attackers pounced
- first cleared all liquidity from curve (needed just $350m $ust to do that)
- then started dumping their $ust on Binance
- creating a small depeg

- terra market module configured for $150m daily throughput for peg restoration would be enough if liquidity on curve was the intended $4bn instead of $350m
- people in small panic because $btc tanking and small $ust depeg so LFG started selling $btc to restore peg

- that's exactly what the attackers wanted because they've shorted $btc
- LFG dumping $btc while attackers putting pressure on by dumping $ust
- the more $btc sold the lower $btc tanked increasing panic the more $ust sell pressure the attackers needed

- finally people mass panicking and mass congestion hit the chain, cexs suspended withdrawals and shit hit the fan -> bank run on anchor
- Jump/LFG likely realized whats happening somewhere in the middle of their $btc reserve bag, stopped dumping $btc to save the peg, let it burn

- now peg is being restored naturally via the market module
- rumors about big deals made during the night

All of this would not be economically viable if the 4pool was live. Because clearing the 4pool alone would require $3bn instead of $350m. The timing was not a coincidence.

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