The TerraUSD (UST) algorithmic stablecoin and its sister token Luna collapse in a death spiral, erasing ~$40 billion in value in days. Bitcoin drops to $27,000 in the contagion. The event triggers a cascade that would bring down Three Arrows Capital, Celsius, Voyager, and eventually FTX — all centralized entities. Bitcoin the protocol is unaffected.
Wikipedia: Terraform Labs