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The Spectacular Crash of Su Zhu: My Front-Row Seat to a $3 Billion Disaster
I still remember watching the news break in real time - Su Zhu's empire was collapsing before our eyes. This wasn't just another crypto failure; this was the financial equivalent of a high-speed car crash you couldn't look away from.
Su Zhu wasn't your average crypto bro. In 2012, he was grinding away at Deutsche Bank like thousands of other traders. But by 2021? The man was sitting on a crypto throne, running Three Arrows Capital with billions under management and the kind of reputation that had everyone hanging on his every tweet.
God, I hated how much I respected his success.
What makes me sick is how predictable the collapse was in hindsight. 3AC borrowed money from literally anyone who would lend it - then borrowed more on top of that. They were leveraging themselves to the eyeballs while presenting this image of calculated genius.
The whole thing reeked of desperation masked as strategy. Bet big, pray the market keeps climbing, and if it doesn't? Well, that was someone else's problem.
And it wasn't just his money! He was playing with:
Then came that idiotic $500 million LUNA bet - vaporized in 48 hours. The collapse was biblical. As Bitcoin tumbled, their collateral evaporated. And what did our financial genius do? Disappeared like a thief in the night.
You know what killed 3AC? Pure, unadulterated greed. No risk management. Leverage stacked on leverage. Zero transparency. Their entire business model was essentially "number go up or we're screwed."
I've seen my share of crypto disasters, but this one hits differently. It wasn't just investors who got burned - it was the entire ecosystem. Trust shattered. Projects collapsed. All because one man and his team thought they were too clever to fail.
The lesson couldn't be clearer: even in the wild west of crypto, leverage is a loaded gun pointed at your head. Su Zhu pulled the trigger himself.