Bittensor $TAO dropped over 10% today as Bitcoin was up, due to a major ecosystem-specific incident. Covenant AI, Subnet SN3 (Templar) the subnet that trained the Covenant-72B AI model (and was the main reason TAO surged 90% in March 2026) suddenly exited or was HACKED from the network. This shattered confidence in Bittensor’s core utility, triggering panic selling with a 94% spike in trading volume to $1.45B. As of now, there has been no official statement from the Bittensor or Covenant AI team#freedomofmoney