[thesausageking]

Crypto or not, when a large, heavily leveraged hedge fund implodes, it's really complex to unwind. It was the same when Bill Hwang's Archegos Capital failed last year:

https://en.wikipedia.org/wiki/Archegos_Capital_Management

The day they got wiped out, the liquidations caused a 27% drop in share price of ViacomCBS. The various lawsuits and charges of fraud and racketeering will take years to work their way through to completion.

[phabricator]

Are there other crypto funds that are structured to handle a failure better?

I know it's crypto but it's shocking to see people invest in a suitcase stuffed with dollar bills.

[rich_sasha]

"custodianship", as it is known, does begin to exist in crypto world. The custodian / administrator / prime broker (all related terms) hold the actual keys, and you have something like a limited key that permits some pre-agreed operations. So for example you can only wire funds to pre-approved addresses.

[randomran01234]

DeFi is holding up just fine.