In Korea, a cryptocurrency platform lost 99% of its funds due to the collapse of the Luna token

South Korean digital asset management platform Uprise has lost about 99% of its clients' funds due to the liquidation of a short position in Terra’s Luna token.

According to local journalists, as Luna’s price fell, the artificial intelligence used by the Uprise platform to trade on the futures market shorted the asset from $ 60 to almost zero. The unexpected spike in Luna’s quotes led to the liquidation of the position. According to the Uprise platform, 26.7 billion won (about $ 21 million), which was 99% of client funds, and 3.9 billion won (about $ 3 million) of the company’s assets were lost.

It is not yet known what Uprise plans to do next and whether it will return the lost funds to customers (as Axie Infinity representatives are already doing after a hacker attack on the Ronin sidechain). As a reminder, the Terra ecosystem collapse affected both large companies and their depositors, as well as small investors. One of the victims is a Ukrainian citizen, Yuriy Popovych, who invested about $ 10,000 (all of his family’s savings) in the UST stablecoin and lost almost everything.