I believe that this is just temporary. Terra Luna's team already released a statement about this case. A lot of people are worried about this, even me I have some UST but I am still calm. This is also because of the recent dump, for sure they didn't anticipate this but I am positive that they will become stable soon and fix this issue.
Well obviously they are going to write their positive spin about this. But this was always a possibility with algorithmic stablecoins and people will see that it wasn't the working holy grail believers thought it would be. Imho this could be beyond recovery, and after more and more people abandon the luna-ship, it won't be sailing without any users.