Jane Street Accused of Market Manipulation Amid FTX Fallout

Trading firm Jane Street has been in hot water after TerraForm Labs accused it of market manipulation, leading to the deletion of all its posts from X. The crypto community on Reddit and Twitter is speculating that if Jane Street had not manipulated the price of TerraUSD (UST), Luna (LUNA) would not have crashed, leading to the FTX collapse.

This in turn could have prevented a sharp decline in Bitcoin's price, which has been trading around $68,400. This is nearly 50% below its record high of over $126,000 seen in order.

Crypto analyst Justin Bechler doesn't disagree that the ETF mechanism is broken but still has his suspicions about Jane Street's role. He believes Jane Street has privileged access to ETF redemption flows and may have exploited this for its own gains.