We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.
If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.
Is this what's happening now already?
The war of the super rich is upon us and we are affected, I also don't have much investment in the Luna Terra ecosystem, but honestly witnessing the drama stories these days, I find it very funny to the market this. Perhaps the past mistakes will be a great lesson for the hype and FOMO following the crowd. Hopefully they will not lose momentum in the market. I still think this trick will be even worse in this space next time. Not only Terra, but many other names will also suffer from similar situations like this.