Is there still hope for this industry?
Does decentralization still exist?
Isn't the data on the chain supposed to be transparent and immutable?
Then why do they specifically engage in data fraud, poison the chain, and pocket the profits while leaving the risks to the users?
Friends who have been playing DeFi these past few days probably haven't been sleeping well; stablecoin investments have been blowing up one after another, which is quite unbelievable.
I really agree with Cody's statement, which is to first attract deposits at high rates, then take users' money to do circular loans, directly printing four times the money.
Then they take these high-risk assets and cooperate with some chain protocols to open pools, raising the TVL while using the printed money for arbitrage.
They made money, kept it in their own pocket, and when something happened, they simply died on the spot, without even a chance for rescue.
This is nothing. After realizing something went wrong, they crazily used already bankrupt junk assets to borrow and lend, directly converting it into USDT to deposit into the Binance exchange.
All kinds of abnormal behavior are equivalent to indirectly declaring — I never intended to repay the money; just take my air for liquidation.
Apart from their subjective wrongdoing, objectively, some platforms also played a role in exacerbating the situation, such as Morph, Euler, and also Lista.
You can understand that since my income source is the cut, why should I care if it's normal assets or junk assets? As long as I can take the cut!
So these platforms turned a blind eye to junk assets, allowing toxic assets to spread into more people's pockets. Saying it's indirectly aiding and abetting evil isn't an exaggeration, is it?
This incident is very similar to the subprime mortgage crisis in 2008, where real estate agents encouraged strippers to buy five houses for their own income — the strippers didn't even know that interest rates would soar the following year.
The reason is simple: these platforms, like intermediaries, take a cut. As long as users keep buying based on yield, they can keep taking cuts.
As for whether these assets are over-collateralized or risky, they completely don't care.
Under the sun, there are indeed no new stories.
This industry may not have issues, and the logic of DeFi may also be fine, but people are problematic.
This is also why the orange seat previously said not to trust people, but to trust human nature.
Tonight, the orange seat is also helping a member who stored money in Lista to retrieve their assets.
He stored 80,000 USD in Lista, and it cannot be redeemed directly in the Binance wallet. If calculated based on current liquidity, he can only exchange a little over 300 U — what's the difference from robbery?
However, there are not no solutions. The orange seat couldn't pay attention, so they sought out the whistleblower Loki regarding this XUSD crisis. He has been warning about this crisis since the day before yesterday, so you can check the content below and pay attention.
The original old students should still remember that a few years ago, the orange seat invited Loki to share internally. Loki is very proficient in this on-chain area.
The orange seat synchronized the members' situation with him, and then Loki provided a solution based on the current situation, having already successfully redeemed a small portion.
If I don't sleep tonight, I might be able to redeem everything.
Thanks to Loki for providing support late at night. I've also told the members that if successful redemption avoids losses, they must give Loki a big red envelope.
To be honest, this has made me break out in a cold sweat; the reason is simple: I've used those explosive DeFi platforms, but I just ran away early.
I withdrew from these two explosive points at the end of September because I pay more attention to information and returns in this area. Fortunately, I didn't step on a landmine; otherwise, I wouldn't have slept well these past two days.
It really was a blessing from the heavens that this disaster occurred before our practical event on the 22nd; otherwise, after our event, encountering this would have been a real headache, and there would be no way to explain it.
After it exploded before the event, we could see clearly which ones on-chain were swimming naked, which allows for precise avoidance of pitfalls.
(2025.11.6 article)
