Why YieldBasis is working exactly as planned. The market just took a brutal hit. Here is how YieldBasis is surviving the crash, based on the latest math and data from the @tulipacapital report. When this team entered @yieldbasis with cbBTC back in November, the strategy was clear: leverage on top of Curve to earn massive fees while keeping price exposure. But now that the market has dumped, the TRD (Temporary Redemption Discount) has kicked in. If you try to withdraw now, you’ll lose a significant percentage (21%). But you need to understand the difference between the actual value of the assets in the strategy (the PPS) and the value you get if you exit early. The TRD isn't "lost" money; it’s a reflection of the pool imbalance caused by massive selling. The math behind the TRD is very specific: > If BTC bounces back to $80k-$85k, the TRD drops to 0% almost instantly. > If BTC stays flat (around $63k which is the actual price), we would need about 38-40 weeks for the fees to rebalance the system. > If BTC drops to $50k or lower, we enter a critical fear phase where we would have to wait more than a year, even though the underlying asset value (PPS) has already grown by 7.3% since launch. To speed things up, the new Hybrid Vault and LEVAMM adjustments will start shifting fees dynamically to redistribute liquidity faster. Everything is working exactly as it was designed to. It’s painful if you need an immediate exit, but the mechanical reality of the protocol is holding up.

INTEL: A market maker’s grid strategy malfunction is driving abnormal price swings in $ETH

POST-MORTEM: The "Andes-to-Alpha" Blowup Date: February 6, 2026 Subject: Liquidation Event – "Victoria Peak" Capital (HK) Desk: Exotic/Macro RV We are receiving confirmation of a catastrophic unwind involving a prominent Hong Kong-based volatility desk this morning. The dust is still settling, but the anatomy of the blowup appears to be a classic case of correlation breakdown meets illiquidity. Here is the breakdown of the $450M implosion that just hit the tape. 1. The "Genius" RV Setup The fund, which we’ll call "Victoria Peak" for anonymity, was running a highly levered Relative Value (RV) book designed to harvest yield from disconnected emerging market betas. • Short Leg: Colombian Biotech basket (illiquid, sensitive to localized regulatory/drug-approval news). • Long Leg: Bitcoin via IBIT (BlackRock ETF) Spread Options. • The Thesis: They were betting on a "Risk-On" global environment where crypto beta (IBIT) would outpace obscure LATAM healthcare (Colombian Bio), effectively hedging the crypto volatility with the biotech short. 2. The Exogenous Shock: The TIA/EIGEN Collapse The structural flaw wasn't in the main legs, but in the collateral management. The fund was using a basket of "Modular Blockchain" assets as cross-margin collateral. • Specifically, they were heavily exposed to the TIA/EIGEN ratio (Celestia vs. EigenLayer). • The Event: A governance fork rumor caused TIA to nosedive while EIGEN stayed bid. The ratio collapsed -34% in 4 hours. • This vaporized their collateral buffer. Because the Colombian Biotech market is so thin, they couldn't cover the short without pushing the price against themselves. 3. The Contagion: Puking the Macro Book With the crypto-collateral worthless and the Prime Broker (PB) issuing an immediate margin call, Victoria Peak had to liquidate their only liquid assets to stay alive. • The Victim: Their macro hedge book—Long KRW / Short Copper. • Usually a play on Asian industrial manufacturing slowing down, this was their safe haven. • They were forced to panic-sell KRW and buy back Copper futures at market execution. This caused a temporary 40-pip dislocation in USDKRW spot markets and a random spike in COMEX Copper. 4. The Kill Shot: Enter Cyant Arb The market smelled blood, but one desk acted fastest. Cyant Arb, a notoriously aggressive proprietary trading firm known for predatory liquidity provision, identified the distress flows immediately. • Cyant’s algos detected the correlation break between the TIA liquidation and the forced KRW selling. • They widened spreads on the IBIT options and stepped away from the bid on the Biotech stocks, trapping Victoria Peak in a liquidity vacuum. • The Liquidation: Cyant eventually stepped in to act as the counterparty of last resort, buying the fund's KRW/Copper bags at a massive discount while simultaneously squeezing them out of the IBIT options. Result: Victoria Peak is effectively flat (and arguably insolvent). Cyant Arb booked an estimated 18% PnL on the session.

Kodiak (@KodiakFi) is live on tread.fi! > Trade advanced order types (VWAP, POV, etc) through the terminal > Run bots (market maker, grid, reverse grid) > Trade delta neutral strategies cross exchanges with DN bot > Track all your portfolios (CEX DEX) in one place

The scheduled unlock for $BERA comes tomorrow. But, I would be extremely careful and reserved if you think that shorting this is an “ez win”. 1. Assuming that only 30% of both investors and team fully sell the unlock (which is a reasonable assumption, given some investors would like not see the point in recuperating at these prices), the total sell pressure amounts to ~4M USD. That figure, when looked at statically, compared to looking at the 41.70% release percentage from a relative view has a very stark discrepancy. 2. A $50M DAT was announced a few months back, that’s more than enough to cushion some jitters on the unlock. I give absolutely zero fucks about legalities and divisions of control. The fact of the matter is, Polychain sits on the board of the DAT, and they’re also a private investor. Basic human principle alignment logic here would say something.

Garret Bullish (@GarrettBullish) just got fully liquidated for more than $700M and is now down ~$270M over the past two weeks on Hyperliquid. He’s also down more than $128M in all-time PnL since he started trading on this account in early October. hypurrscan.io/address/0xb317…