HOW JANE STREET BROKE BITCOIN'S PRICE

Summary from the TLDR Crypto newsletter

There are three allegations around Jane Street Capital. First, a federal lawsuit by Terraform's bankruptcy administrator alleges the firm used insider info via an intern's chat group to front-run a $150M TerraUSD withdrawal in May 2022, with a linked wallet pulling $85M within 10 minutes. Second, a documented pattern of algorithmic 10 AM ET Bitcoin sell-offs throughout late 2024-2025 that triggered liquidation cascades and paused after the lawsuit became public. Third, scrutiny of Jane Street's $790M IBIT position, which market structure analysts argue is substantially offset by undisclosed derivatives, potentially rendering the firm net short while appearing long as one of only four authorized participants in the Bitcoin ETF mechanism.