This is the main reason why Luna's supply is increasing. And if it continues like this, you can probably imagine how bad it will be. There is only one way for this team to normalize everything and that is to take UST to the previous price which means 1 usd. And stabilizing the UST 1 usd now seems almost impossible unless big investors come.
Example
If 1 UST is trading at .99 USD, users can buy 1 UST for .99 USD. Users then utilize Terra Station’s market swap function to trade 1 UST for 1 USD of Luna. The swap burns 1 UST and mints 1 USD of Luna. Users profit .01 UST from the swap. This arbitrage continues, and UST is burned to mint Luna until the price of UST rises back to 1 USD.
Source: https://docs.terra.money/docs/learn/protocol.html