A lawsuit against Jane Street alleges that the company used non-public information to conduct liquidity adjustment trades before TerraUSD's collapse in May 2022. On-chain data shows that Terraform Labs withdrew approximately 150 million UST from Curve's 3pool on May 7, leading to a decline in liquidity, followed by a large-scale unstable swap transaction. While the key issue in this case is proving whether insider information was involved, the collapse itself exposed the structural vulnerabilities of algorithmic stablecoins, which rely on market confidence and shallow liquidity pools.