Was LUNA / UST Manipulated Because It Threatened the Dollar?

The 2022 collapse of $LUNA & UST still fuels controversy.
One question refuses to die:

👉 Was it a natural failure… or a deliberate attack because UST threatened the financial system?

Let’s break this down without emotions, myths, or conspiracy thinking.

1️⃣ What was UST — really?

UST was not a typical stablecoin.

❌ No bank reserves
❌ No Treasury backing
❌ No regulation
❌ No lender of last resort

Its peg relied entirely on an algorithmic mint–burn mechanism with LUNA.

Add to that:

• Anchor Protocol offering ~20% APY

• TVL exploding into tens of billions

• Global capital flowing outside banks

👉 This wasn’t an attack on the USD itself
👉 It was a large-scale financial experiment beyond institutional control

2️⃣ Was LUNA a threat to the US dollar?

On a macro level? No.

The USD is backed by:

• The US economy

• Sovereign debt

• Military power

• Global banking infrastructure

UST could never replace that.

⚠️ But here’s the nuance:

UST was a threat to:

• Centralized stablecoins (USDT, USDC)

• The narrative that “only regulated money is safe”

• Institutional control over capital flows

And that alone makes something vulnerable.

3️⃣ Was there manipulation?

This is the most important part.

✅ What we know:

• Massive, coordinated UST sell-offs

• Simultaneous shorting of LUNA and BTC

• Attacks during low-liquidity windows

• The algorithm’s weaknesses were precisely exploited

This was not retail panic.
This was professional market execution.

4️⃣ Who likely did it?

❌ No evidence of:

• US government involvement

• Federal Reserve action

• State-level coordination

✅ Most likely:

• Large hedge funds

• Sophisticated TradFi-linked capital

• Players who understood the system’s fragility

Markets don’t need conspiracies.
They only need:
Predictable mechanics + size + greed.

5️⃣ The uncomfortable truth

💣 LUNA didn’t collapse because it threatened the dollar
💣 It collapsed because it was a perfect target

Too fast growth
Too much trust
Too simple an algorithm
Too few stress scenarios

The market did what it always does.

6️⃣ Effects still visible today

After LUNA:

• Stablecoin regulation accelerated

• Algorithmic stables were “narratively killed”

• Capital flowed back to USDC & banks

• Fear replaced innovation

That shift was not random.

7️⃣ Final summary (no cope)

✔️ Market manipulation: YES
❌ Proof of an anti-USD conspiracy: NO
✔️ UST threatened financial control, not the dollar
✔️ The collapse was logical, not accidental

The market doesn’t forgive idealism.
And LUNA was idealistic.

#LUNA #UST #CryptoHistory $FOLKS $FIL