“Stock purchases by senate members generate abnormal returns... returns are higher if the senator has direct jurisdiction over the firm through committee assignments”
This isn’t just insider trading: traders think Senators have inside info, so they buy the stocks Senators trade!
1/ The prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA.
The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads.