[dropnerd]

3ac probably made 3 bad trades:

- long ust/luna

- long gbtc, short btc

- long steth, short eth

will focus on last two trades in this comment.

gbtc is like a bond that eventually pays out as btc when regulatory approval comes.

steth is like a bond that eventually pays out as eth a few months post-merge.

but in the aftermath of the luna/ust crisis and general crypto bear, there was a flight to safety (gbtc is less liquid than btc, steth is less liquid than eth), causing the gbtc/btc and steth/eth spreads to widen instead of narrow, and 3ac was caught out of position.

tldr: they probably profited some from short btc but lost more on long gbtc.