
I previously said that Ethena Labs would be the reason for the bear market. We saw this in the recent drop. I couldn't write at length because I was sick, but I'm piecing together the reason for the drop and what you can do to protect yourself 👇 1️⃣In the drop, Trump and CZ most likely made a deal. Trump told CZ that he would do this manipulation (announcement of tariffs on China). In the drop, hundreds of millions of dollars worth of shorts were opened first. 2️⃣Trump's goal is to make money (most likely his son Barron), CZ's goal is to make money and create a lot of liquidation on Hyperliquid to make the platform look bad. Thus paving the way for ASTER. That night, approximately 3 billion dollars of liquidation took place on Binance and 10 billion dollars on Hyperliquid. 3️⃣Everything starts with someone (most likely CZ and his crew) dropping the peg of Ethena's USDe and other collateralized assets below 1. When the peg drops below 1, the loans taken out on these assets receive margin calls and are liquidated. When they are liquidated, the coins bought with the loans taken out on them also go into liquidation. In fact, the peg of these assets should have been pulled with price providers from outside Binance (price oracle - like Link), but Binance pulled the entire peg price from its own exchange. This is a mistake. It was done deliberately, and this fundamental event was manipulated. 4️⃣In order to deepen the drop or because they could no longer defend the drop, market makers are pulling the already scarce liquidity out of the coins. Because of this, the coins are seeing 0. When there was no liquidity to meet the sale, the coins hit 0. Only Binance has these zeros as far as I can see. People are also rebelling against this. 5️⃣Later, the shorts with large profits were also closed with auto deleveraging. For much less money than they profited. This is another design flaw, but it is done deliberately. 6️⃣But Hyperliquid's reputation did not end as CZ calculated, on the contrary, people solved the problem and loaded up on CZ.
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