An increasing number of hedge funds have opened USDT short positions worth hundreds of millions of dollars in notional value with Genesis Global Trading.
The report adds that some investors have been shorting USDT for about a year. Still, many hedge fund managers are speculating against Tether after the collapse of UST stablecoin.
Tether CRO Paolo Ardoino says that some hedge funds are attempting to cause panic in the market after the collapse of TerraUSD and the LUNA token.
TerraUSD was one of the highest-ranking stablecoin in the market, algorithmically pegged to 1:1 to the value of the USD. UST lost its peg to the dollar, crashing alongside the native LUNA token.
The events destabilized the stablecoin sector causing major liquidations in the sector. Tether was also affected, where it depegged to about $0.97 before recovery.
Tether recently released a report affirming that its stablecoins were fully backed with cash, liquid assets, and other assets. The firm’s total assets were worth more than $82.4 billion, with the liabilities at $82 billion.
The stablecoin issuer has released other stablecoins backed by the Mexican peso and British pound sterling to bring the total stablecoins to five.