According to Bloomberg, liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital are seeking at least $1.3 billion in compensation from Terraform Labs to make up for the losses the fund suffered after the collapse of TerraUSD and Luna tokens in 2022. The liquidators stated in court documents that before the collapse of these tokens, Terraform induced Three Arrows Capital to buy these tokens by manipulating the market to artificially raise the prices of Luna and TerraUSD tokens. The subsequent crash not only wiped out Three Arrows Capital's investment in these tokens, but also caused significant losses in other assets.