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The issue is that the market is too irrational to be able to go short. You can't know when it's actually going to go down.
by sudosysgen 4y ago
The issue is that the market is too irrational to be able to go short. You can't know when it's actually going to go down.
- bb88 4y agoI'm not sure about that. An intentional massive short of Luna and UST at the same time could have had disastrous effects (since UST needed Luna for collateralization). https://coinmarketcap.com/currencies/terra-luna/ https://coinmarketcap.com/currencies/terra-luna/ https://coinmarketcap.com/currencies/terrausd/ https://coinmarketcap.com/currencies/terrausd/ So if you can flood UST and LUNA with enough volume to drop the price, you could send LUNA into a massive selloff. UST would then start to flood LUNA with shares which would accelerate the sell off.
- Hendrikto 4y agoThis seems to be exactly what happened.