Will be interesting to see how and if this will impact the prices further once it is up and working again which would be interrsting given how intriguing the price is already. This is the risk of leveraging up any asset although it seems that collateral should have been enough to support the asset.
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Yeah, should have been is the key. From what I understand, the system triggers this black swan response when the price drops so quickly that there's a risk of the value in collateral not matching what is created as debt. That would be a real problem so to prevent then, everyone gets liquidated and all the debt is locked into one place at a set price.