June 27, 2022 · Market Crash
Three Arrows Capital Liquidation
The hedge fund collapse that exposed crypto's leverage problem
Crypto Fear & Greed
12
Extreme Fear
Source: Alternative.me, June 27, 2022
Bitcoin price
$19,800
30-day change
-22%
Lower 30 days later
What happened
Three Arrows Capital (3AC) was one of crypto's largest and most influential hedge funds. Co-founded by Su Zhu and Kyle Davies, it managed an estimated $10 billion at peak. The Luna crash exposed 3AC's massive leveraged positions, leading to margin calls it couldn't meet. The fund's collapse triggered a chain reaction, Voyager Digital, Celsius Network, and BlockFi all faced liquidity crises tied to 3AC exposure. This event revealed how interconnected and over-leveraged the crypto ecosystem had become.
Key narratives
- Leverage crisis
- Counterparty risk
- CeFi contagion
About the score
The score is the daily value of the Crypto Fear & Greed Index, Alternative.me, a composite of market and attention data. Perception’s own media-based reading for the same day is in the daily sentiment archive for June 27, 2022.
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