Crypto hedge fund Three Arrows faces mass liquidation after a sharp market downturn- one that could potentially erode the firm’s holdings.
Speculation over further woes for Three Arrows comes after founder Zhu Su said on Twitter that the firm is “communicating with relevant parties” and committed to “working this out.”
The fund was seen selling millions of Lido Staked Ethereum (stETH) through multiple transactions to keep its positions from being liquidated.
Its exposure to the Terra crash, Celsius and stETH has also raised questions over the state of its finances.
Three Arrows is trying to cover its positions
On-chain data shows that Three Arrows is aggressively posting collateral to lower its liquidation threshold. Crypto commentator @OnChainWizard notes that the firm faces a $264 million liquidation on Aave if Ethereum prices hit $1,042.
