I don't think it is around defences it was more that UST was expanding too fast without the market to fill it. This enabled someone with a lot of money to dump UST and cause a depeg while also shorting Bitcoin. It caused a catastrophic melt down. But no doubt as always there would be plenty of winners over the next few weeks. Sad all that Luna cash is gone to someone else, wonder who ended up with the majority of it all.
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Market cap of ust compared to Luna should have been minuscule. They didn’t even have this basic control in place.
Correct and then the bots kicked in and kept arbitrage which blew out Luna mint.
The OTC deal, reportedly, is also a problem.
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Well yup, they purchased a heap of Bitcoin with UST then the person that they bought the Bitcoin off had UST and naturally they were going to dump it for more Bitcoin. They got a premium price for it.
So when they dumped their UST to buy Bitcoin they tried to find large liquidity pools to get the cash from. Then bang. Network failure.
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