3AC continued to borrow from lenders expecting a market rebound. This was until bitcoin (BTC) fell to nearly $20,000 in late June, causing the firm’s positions to go awry and making it unable to repay any loans. The fund lost money on luna, its GBTC shares traded at a discount, and overall market declines meant all altcoin token holdings fell drastically in value.
Source: https://www.coindesk.com/business/2022/07/22/three-arrows-capital-founders-says-terra-gbtc-trades-led-to-fund-blowup-report/?utm_medium=referral&utm_source=rss&utm_campaign=headlines