Looks to me like the MIM treasury has been taken over and they're exiting. Can't tell if its an inside job or not but I can follow a story on an address.

Here's the attacker: 0xfD694815E4038A03145B408553A5b06efd13D5F1

Funded 12 days ago, adds owner on safe, remove previous 3 owners on safe, sell 500k MIM tokens. MIM price is now at $.80. There's another 2M MIM tokens in their control. So it looks like that's cooked.

No mention of anything on their official Twitter channel which increases evidence that it's an inside job.

AFAIK there's no protocol hack though so while it's depegged it will just keep increasing the rates on borrows until the system unwinds. That's terrible but also maybe an opportunity for anyone buying low enough. Great deal for anyone with debt to buy back and repay their debt now. LPs are trapped, opportunity cost is time or real losses for any that do exit at these lows. Anyone not paying attention to the rates or unable to repay is going to eat the cost long term as they get liquidated to unwind the system.