According Jump Crypto report on the crash of Terra USD (UST) while whales were exiting their positions in the algorithmic stablecoin, retail investors kept buying.
Jump Crypto is one of the major backers of the collapsed Terra blockchain. The report is its first public statement since the collapse of the blockchain.
Report is based on available blockchain transactions. It shows that several large investors with over $1 million UST liquidated their holdings very early into the depeg leaving retail investors with worthless tokens.
Retail investors with less than 10k in UST increased their funds between May 6 to May 9. But large depositors reduced their UST position in Terra’s Anchor protocol by almost 15% on May 6, when UST first lost its peg.
The increased exposure from small investors was not enough to counteract the outflow as “their total position size was an order-of-magnitude smaller than that of mid-sized and large depositors”.