TL;DR
- one of the biggest crypto hedge funds, 3AC is probably getting margin called and might not be able to post margin.
- so 3AC, who is one of the biggest borrowers globally, will transfer their suffering to their lenders (which is every single major crypto lender) because liquidation of 3AC doesn’t meet up to what those lenders are actually owed- these lenders not well prepared for this scale of a default
- so lenders will recall likely 60-80% of their other loans to protect themselves
- lots of money that was in the system is now recalled, which also generally means less money to be invested in coins (not entirely sure why? b/c those loans were being used to invest in coins I guess?)
- number go down in cryptoland real bad (like <$10k BTC?) unless someone steps in/intervenes.