Remember the black swan event in the crypto market in 2022? Do Kwon, the co-founder of LUNA, was ultimately sentenced to 15 years, and the ecosystem he built collapsed in just 6 days.

In the week of early May, everything was on the brink of turning point. On the 7th, someone withdrew a large amount from a stablecoin pool on a certain DEX, causing UST to instantly de-peg from $1 to $0.98. It seemed like a minor fluctuation, but little did anyone know this was the calm before the storm. Two days later, UST had fallen to the $0.6-0.7 range, and crypto holders began frantically swapping UST for LUNA to escape.

On May 10th, things went completely out of control. In an attempt to save UST, the system started printing LUNA wildly, causing the supply to skyrocket from 300 million to several trillion within a day. At that time, LUNA was still trading at $60. But this was only the beginning of despair.

The death spiral officially launched on the 11th: LUNA plummeted from $60 to just a few cents, and UST dropped below $0.2. By the 12th, the Terra blockchain experienced two halts, stopping block production, and LUNA finally fell to $0.00003, while UST dropped to around $0.05, essentially becoming worthless.

The bill was calculated: in just 6 days, LUNA lost over 99.999%, and UST de-peg reached 97%. This was the crash that caused countless sleepless nights.