🔍 Jacob Gadikian (@gadikian), founder of Notional Labs, suggests that the collapse of Terra's algorithmic stablecoin may have been the result of a coordinated attack. 🚨

He claims an unidentified third party targeted the Terra blockchain to disrupt the $1 UST peg and profit from arbitrage opportunities. 📉

During this turmoil, validators faced an onslaught, with hundreds of millions in transactions being manipulated. Gadikian even shared a video demonstrating similar effects on the Cosmos hub security testnet.

Other researchers noted a staggering 6x increase in transactions during the depeg, attributed to bots, which hindered Terra's ability to restore its UST peg.

The attack was executed from a few addresses, resulting in over 70,000 failed transactions that choked the network. As investigations continue, the true culprits remain at large.

This comes as Terra founder Do Kwon faces extradition to the U.S. for orchestrating the fraud that led to nearly $50 billion in losses.