The recent cryptocurrency market crash has been attributed to a combination of factors, including a 12% subsidy for USDe that led to widespread loop loans, according to Hanba Longwang, a prominent crypto KOL. The USDe premium attack, exacerbated by the Trump trade war, resulted in the liquidation of these loans, further devaluing USDe.
Additionally, the de-pegging and discounting of USDe caused leverage to unexpectedly double, leading to the liquidation of 1x long positions. This triggered a chain reaction, causing small altcoin contract prices to plummet and USDe to fall sharply, resulting in significant losses for market makers.
Crypto Market Crash Linked to USDe Premium Attack and Leverage Doubling
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.