Matt Levine has a fairly reasonable take on this: '[…] if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at Time 0 you give them an extremely gameable system that can produce billions of dollars of profit, at Time 10 your system is going to be a smoking wreckage and they are going to have billions of dollars of profit. That’s their whole job, you know? […] But as a heuristic, I mean, come on. Terra was like “hello we have a balloon full of money, here is a pin, dooooooon’t pop the balloon.” Guess what!'

From the title I thought there was some massive Hashicorp/IBM boondoggle. But no. Just crypto being crypto.

If one trade can crash a "stable" coin down to zero, it only proves it was a ponzi scheme like the rest of them.