The decentralized finance (DeFi) sector has been hit by a significant crisis, with $10 billion in stablecoin value evaporating within a week. This marks the largest outflow since the Terra UST collapse in 2022. The turmoil was triggered by Stream Finance's xUSD, which plummeted to $0.11 after losing $411 million in a single day. The collapse of xUSD had a domino effect on Elixir's deUSD, which was heavily collateralized with xUSD, resulting in a 65% loss in value. In response, Elixir announced its retirement and plans to compensate holders with USDC payouts. The crisis has been linked to a failed delta-neutral strategy during an October 11 liquidation event, highlighting systemic vulnerabilities in DeFi's complex and leveraged structures.