Stream Finance, a decentralized finance (DeFi) protocol, has suffered a loss of $93 million in user funds due to actions by an external fund manager. This incident has led to a suspension of all deposits and withdrawals on the platform. The loss has caused its stablecoin, xUSD, to plummet by 77%, affecting other platforms such as Morpho, Euler, and Silo. The financial turmoil was revealed through a lawsuit indicating that Ryan DeMattia, the fund manager, used the funds to cover a personal margin call. The xUSD's recursive lending structure has further exposed $285 million in debt across the DeFi market, exacerbating the instability.