The hedge fund collapse that exposed crypto's leverage problem
Fear & Greed
Extreme Fear
Bitcoin Price
$19,800
30-Day Change
-22%
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