What exactly happened to TerraUSD and Luna?

[cryptohog]

TerraUSD was an “algorithmic stablecoin” meant to stay at $1 through an automated relationship with Luna. When confidence broke in May 2022, the system spiraled out of control, wiping out $40B in days. Kwon had claimed the system was robust — prosecutors showed he knew it wasn’t.

[Rimon Khan]

He was convicted of fraud-related charges tied to the collapse of TerraUSD and its misleading structure.

[JanEmil]

Was a biiiiiig loss.

[Nahid Hossen]

As blockchain adoption grows, prediction markets offer a new financial primitive that traditional systems can’t match.