Digital asset treasuries have experienced a significant collapse, leading to a widespread market sell-off and revealing weaknesses in the digital finance infrastructure. The decline in treasury values has caused a crisis of confidence, prompting organizations to offload assets to maintain liquidity, which in turn has further depressed prices. This downturn has underscored the issue of over-leveraging within the crypto sector, as falling asset values have triggered margin calls and forced liquidations. The resulting contagion effects are extensive, impacting retail investors with losses and causing liquidity issues for platforms as users rush to withdraw funds.