This current crypto nuclear bear market marks my third brush with generalised market carnage. And while they can sometimes feel like reruns, every episode yields new lessons to be learned. Everyone is always going to have their own view of what those lessons are — but if it’s the mainstream financial media you’re listening to, I can tell you with confidence that you’re being fed the wrong takeaways. They, in the service of the devil that is TradFi, will use any and every opportunity to poke fun at our economic / social experiment — gleefully proclaiming, “we warned you crypto was worthless!” In the holy name of our Lord Satoshi, I shall attempt to correct the invective that seeps forth from these malicious harpies.

In this piece, I’ll be using the Three Arrows Capital (3AC) saga as a lens through which we can better understand the true insights that should be gleaned from the current bear market. Please note, while I personally know Su Zhu and Kyle Davies (the principals of 3AC), I have no knowledge of what transpired other than what has been reported publicly. I intend to use my knowledge of crypto, financial services, and common sense to tease out the story of what I think led to its collapse, starting with the implosion of TerraUSD and Luna.