Study: #TerraUSD Crash Caused by Coordinated Trading Attack
Researchers have found new evidence that the $3.5 billion TerraUSD and $LUNA crash in 2022 was likely caused by a coordinated trading attack. Instead of normal market activity spread across many traders, just a few controlled nearly all trading right before the collapse. This pattern suggests a planned effort to crash the system.
The team used a method called temporal multilayer graph analysis to study trading behavior on Ethereum. Their data showed that five or six traders acted in sync, each holding almost the same market share — too precise to be random.
They developed the tool with Pometry, a spin-out from Queen Mary University of London. The study was published in ACM Transactions on the Web by Cheick Tidiane Ba, Ben Steer, Matteo Zignani and Richard Clegg.
