It might not only be that. Before we were very worried about USDT's peg if it can keep it versus USD then now we are presently looking at UST if it can recover and repeg to USDT which also is trying to keep its peg with USD hehehe. This is a comedy show being written in crypto history with algorithmic stablecoins pegging with fractionalized stablecoins that are pegged with a fractionalized fiat currency. The Big Short 2.0 in the making.
Also, it is speculated that a major liquidity provider in the cryptospace has lost much of its equity in UST and Luna. This might cause the whole market to dump lower.
I believe that major liquidity provider may not be true for just one person, or maybe it is true, but the 100% guaranteed truth is that we have a ton of people who got together to be a big liquidity provider, when you consider all of us who got out, that becomes a huge one. So just one whale or all of us, the result is that a ton of liquidity left the market recently.
This allowed only the few that got in, to get out and make the market move a lot. This is why I believe that the end result is the same, the fall was caused by lack of liquidity, and the volatility caused by less than normal amount of money sold but not bought by others.
