Yala, a Bitcoin liquidity provider, has launched an investigation into suspicious activity involving its stablecoin YU, following community concerns. The company announced on the X platform that it is actively looking into the matter and will provide further updates soon. The issue arose when an address borrowed the entire amount of USDC and most of YU from the Yala Frontier market on Euler, failing to repay at high interest rates. This has led to 100% market utilization, preventing lenders from withdrawing their funds. Additionally, YU's liquidity on EVM is low, with over 90% of the liquidity pool consisting of YU itself, making it difficult to exchange for other stable assets. This situation poses a significant risk of liquidation and de-pegging. Currently, YU is trading at $0.97, according to Coingecko, and has not yet fully returned to its peg.