In a blog post four days ago, Iron Finance blamed the start of the avalanche on "some whales" removing liquidity.
"We never thought it would happen, but it just did," the company said.
"We just experienced the world's first large-scale crypto bank run."
It has been a tough few days for cryptocurrencies.
Stable coins, at least partially backed by some national currency, are supposed to be less volatile. That is their primary attraction. The demise of Titan coin highlights how large investors in illiquid markets can have outsized effects. This exact same process has been playing out in Frontier markets for years, it just that everything happens quicker in cryptos.
Bitcoin failed to sustain the break below $30,000 today. It was helped along by the dovish tone taken by Jay Powell. That also helps to highlight it is more of a risk asset than a safe haven. Upside follow through tomorrow would increase scope for a run back up towards the trend mean.