I think that is a typical risk of the DPos system where you have the main currency BTS as a collateral to create Debt like BitUSD. With Steem we had the same issue with SBD two weeks ago when the Peg to 1$ broke. And now the debt ratio between BTS and BitUSD is broken because the price of BTS went to fast down and on the way down was too much Debt BitUSD created.
The Global Settlement is also new to me and sounds pretty scary...what does it mean all collateral positions got closed??? I guess a lot of Users will have closed them with huge losses in this market. It almost sounds like a catastrophic event for anyone who was leveraged in this market.
Looking forward to further News on this!
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Yeah, all positions got closed and now there's $7.5M worth of debt controlled by the system and locked at the $0.0511 conversion rate. If the value of BTS goes back up, it may turn on again, but for now there's no way to create more bitUSD.
At least the blockchain is back up and running again.