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Comment by maytc | Hacker News Reader

Iirc Celsius was margin called over the weekend and nothing about that was covered here… wow.

https://www.google.com/amp/s/wccftech.com/the-much-battered-...

Did I miss something in that article? It says they deposited more collateral to avoid a margin call, and supposedly they won’t be called until BTC hits $13k.

You can view their BTC collateralized vault here: https://oasis.app/owner/0x87a67e7dc32fdc79853d780c6f516312b4...

Their liquidation price is currently $13,604 USD/BTC. The liquidation is controlled by a protocol and not subject to human intervention.

Where did the collateral come from?

That article says they weren’t and the new number for where that would happen has been lowered.

There's a theory 'out there' that there's a coordinated effort to damage Celsius due to Celsius' pulling out of a deal, with a group of other crypto enterprises, to work towards saving Terra/Luna during the early stages of the de-pegging (which resulted in the much publicised death spiral of loss of ~$100B of investment).

Celsius pulled out of this deal to 'protect their community'. In fairness this action did protect both themselves and their community from any large losses due to the Terra/Luna incident, but it appears that other members of the group of crypto enterprises that did sustain larger losses are (understandably?) significantly salty at Celsius for pulling out of said deal.

True or not, a healthy business can sustain a coordinated attack, and if Celsius doesn't survive then it just means they got their risk analysis wrong for such an edge case. Standard business decision fine-line walking between risk and reward falling off the wrong side.

Maybe Celsius were the first one's to realise that attempting to save Terra/Luna was a fool's errand in the first place, or maybe Terra/Luna could have been saved if Celsius hadn't have pulled out. Given what's come out about Do Kwan since, I'd be guessing the former.

This sounds like a typical WSB/Crypto conspiracy. Is this from Reddit?

There's a fine (sometimes invisible) line separating crypto news and reddit posts.

They're dead. Pausing during a market when people want to withdraw before they lose everything means a bank run as soon as the withdrawals reopen. They know this, and they know that we know this, and conspiracies like this are from people unwilling to accept the obvious truth: They announced their death when they paused withdrawals, and the jig is up.

Not really disputing that, just mentioning that it may well have been a well coordinated targeted attack. If they're dead, then it was a successful attack, and notice should be taken by all industry players as to whose accurately swinging baseball bats at their perceived enemies / competitors.

Mergers and acquisitions by bankruptcy proceedings and the consolidation of power by the already powerful. Somewhat ironic if that's the case, playing out in the cryptocurrency arena.

> just mentioning that it may well have been a well coordinated targeted attack

What kind of “attack” are you imagery that made them insolvent (or close enough to it)? They’re not uniquely impacted by any particular crypto crashes, so it’s hard to see how something could have been engineered to take them out.

I can only provide an oversimplified explanation, but the mass-selling of particular assets to which Celsius is over-exposed in order to trigger price dumping and therefore asset liquidations. stETH as the primary vector.

There may also be a Celsius-token short-squeeze being coordinated in order to help Celsius maintain some level of perceived value.

Who knows the reality, but it's interesting in a financial-trickery context.

Why must it have been an attack? And even so why don't Celcius take responsibility? When 2008 happened did we blame Mr. Burry for his big short or did blame the banks for taking such obscene risks in the first place?

This, right here folks, exemplifies the weird cultural phenomenon of company fandom that we see so often on the internet. Celsius not only rips people off, but ordinary people then create a dramatic narrative of how that company was actually looking out for them!

It reminds me of the sort of person who believes they share some emotional connection with their favorite celebrity. With delusions like these, is it any wonder how powerful people can get away with so much?

This isn't directed at you, but at whomever made this story up.

Yeah, no offence, I'm just 'reporting'. In regards to this:

> people then create a dramatic narrative of how that company was actually looking out for them!

That's actually what the Celsius CEO, himself, said, against accusations that Celsius was hiding losses due to Terra/Luna collapse.

> That's actually what the Celsius CEO, himself, said

CEO has to decide between:

a) tell the truth: we don't have your money b) lie: everything is fine and we're protecting your money

When people say something, try to understand what would be best for them. Therein lies the truth.

Exactly, crypto not only tolerates scammers, it incentivses them. Imagine defending the guys who rugged you. All this tells me is that I too should launch a cryptoscam of my own

That sounds exactly like the “Citadel did it!” blame story that surfaced within a day after Terra collapsed.

Despite it having been visible for weeks that something was going down, no, it was evil hedge-funds that killed it.

It’s just conspiracy thinking.

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