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Jane Street Hit with Terra $40B Insider Trading Suit

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Re: Jane Street Hit with Terra $40B Insider Trading Suit

#51

Post by wzdd »

tzs wrote: post #29
duskwuff wrote: post #26

Earlier quoted context omitted.

The negative parallelism pattern is broader than the literal phrasing "not X, but Y". Here are some examples from the article: - "A new lawsuit doesn’t just revisit the $40 billion Terra-Luna meltdown; it questions whether..." - "Ten minutes is not a coincidence. It is a trade." - "It reads less like a rescue offer and more like a firm positioning itself..." - "These are not isolated; they are part of Snyder’s broade…

Thanks. I probably didn't notice them because they don't seem at all unnatural.

Not seeming unnatural is literally what the LLM is trained to be, but it's pretty interesting how little sense they make when you dig in. Goes to how little attention we pay normally, and/or how much weight we put on text seeming natural.

"A new lawsuit doesn’t just revisit the $40 billion Terra-Luna meltdown; it questions whether..." -- the purpose of a lawsuit is to question something (by making an allegation), you don't sue someone to "revisit".

"Ten minutes is not a coincidence. It is a trade." So is an hour, or thirty seconds, or...?

"Not just as bystanders, but as alleged participants" -- the "just" doesn't make sense; participants aren't bystanders.

Of the list, only "It reads less like a rescue offer" and "These are not isolated; they are part of Snyder’s broader efforts..." makes any sense in context.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#52

Post by soulofmischief »

arkis22 wrote: post #33
yunnpp wrote: post #18

Earlier quoted context omitted.

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

you might consider me an ass, but I think every dollar you put into crypto should be considered dead money. it is not protected by anything. you are gambling on nothing

How is US currency any different?

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#53

Post by bsder »

necubi wrote: post #9
Infernal wrote: post #3

Is there an article about this written by a human? The “it’s not X. It’s Y” is too distracting.

Matt Levine has a take: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... > Look, I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at Time 0 you give th…

How about a non-paywalled link? archive.is seems to be having issues today.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#54

Post by consumer451 »

bdelmas wrote: post #27
consumer451 wrote: post #4

Earlier quoted context omitted.

Waiting for the only human I trust in this space to report on this: https://www.web3isgoinggreat.com/

You could also check Matt Levine from Money Stuff - Bloomberg. He is quite known on HN. The way he writes plus his great knowledge with no BS makes him my favorite (and only) journalist I follow. Edit: actually someone already found his article and posted it: https://news.ycombinator.com/item?id=47160848

Thanks, but the link to the journalist I shared has been threatened multiple times, and yet she kept trucking through. I rarely say "avoid MSM," but in this case, in 2026, I would personally recommend avoiding your MSM recommendation.

No hard feelings.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#55

Post by wmf »

yunnpp wrote: post #18
readams wrote: post #7

As always, Matt Levine has the best take on this: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... "I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at…

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

It was enough of a concern to cause a worldwide manhunt for the guy responsible who is now in prison.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#56

Post by wmf »

fn-mote wrote: post #19
sam0x17 wrote: post #2

And oddly, suddenly the daily 10 AM Jane Street BTC sells stop and suddenly crypto is able to rally...

You have to connect this to the market or the article. I certainly don’t believe Jane Street is keeping crypto down somehow. What kind of non-conspiracy theory are you proposing?

I suspect this theory is cope from people who missed the top.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#57

Post by kortilla »

soulofmischief wrote: post #52
arkis22 wrote: post #33

Earlier quoted context omitted.

you might consider me an ass, but I think every dollar you put into crypto should be considered dead money. it is not protected by anything. you are gambling on nothing

How is US currency any different?

The government with a monopoly on violence and lawmaking uses it to pay for things and to collect taxes.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#58

Post by bb88 »

bsder wrote: post #53
necubi wrote: post #9

Earlier quoted context omitted.

Matt Levine has a take: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... > Look, I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at Time 0 you give th…

How about a non-paywalled link? archive.is seems to be having issues today.

I have the newsletter in email and there wasn't much more than what was posted above, other than quoting from this article:

https://www.wsj.com/finance/currencies/jane-street-accused-o...

That point was the crux of Matt Levine's argument: Terra and Luna were unregulated and easy-to-game securities. So you can't complain when the smartest people on Wall Street figured out how to pop the balloon in their favor -- (not ai emdash) particularly when it's their job.

I will quote the first few paragraphs leading up to it though:

>The basic story of Terra is:

>Terra was a big crypto project, led by a company called Terraform Labs and a guy named Do Kwon, which at its peak had a market value of about $50 billion.

>It had a token, the currency of its blockchain, called Luna, which at its peak traded at almost $120 per token. It also had an algorithmic stablecoin, TerraUSD, whose mechanism was that it could always be redeemed for $1 worth of Luna.

>That’s a bad idea! The problem, which was extremely obvious and which everyone knew about, was that, if people lost confidence in Luna, there would be a death spiral: People would redeem TerraUSD for Luna and sell the Luna, which would drive down the price of Luna, which would lead to more redemptions, which would create even more Luna, until Luna was trading at a tiny fraction of a penny and every TerraUSD would be redeemed for millions of them.

>In May 2022 that very much happened. Terra collapsed, people lost a lot of money and Do Kwon got 15 years in prison for fraud.

>At its peak, though, Terra was a pretty big crypto project, and it had various dealings with some very smart and somewhat sharky trading firms like Jump Trading and Jane Street.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#59

Post by klodolph »

jkubicek wrote: post #43
wuiheerfoj wrote: post #6

10mins is a lifetime in capital and crypto markets - I find it hard to believe that trading 10mins after the Terraform Labs swap hit the chain constitutes insider trading. The claim of artificial price inflation with Jump sounds more questionable but TFA doesn’t seem to put it front and centre

Doesn’t that 10m lag make it seem more like insider training? An automated trade would happen nearly instantly, 10m is plenty of time for insiders to send some texts or make some calls.

Third option, which is that there was a partially automated system with a person in the loop.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#60

Post by bb88 »

int32_64 wrote: post #22

Didn't many of the FTX cronies come from Jane Street? So many of the biggest fraudsters in crypto came from tradfi and their scams were discovered because they picked the one asset class where being unable to process withdrawals implies a 100% chance of fraud. It makes you wonder how much fraud occurs in tradfi but it goes undiscovered because nobody can self-custody their paper metals or paper stocks.

What do you want? Regulated or unregulated securities?

You can't invest in unregulated FTX and then whine when they went and lost all your money -- (not ai emdash) because it was -- wait for it -- UNREGULATED!

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