Kyle Davies

Oversaw portfolio construction and leverage decisions at Three Arrows Capital that included concentrated bets in Terra tokens and associated yield instruments. Those allocations provided amplified buy‑side momentum during growth, but also created large, correlated exposures that required rapid deleveraging when volatility spiked. During the UST depeg and ensuing LUNA collapse, forced margin liquidations and prime brokerage closeouts related to positions overseen by the fund materially removed bid-side liquidity and propagated stress across exchanges and derivatives markets. The timing and scale of those unwind events produced observable cascades in order books, increasing slippage and accelerating price declines beyond organic selling. Documented insolvency filings and later analyses highlighted how portfolio and leverage choices by principal fund managers translated into systemic market effects for a single protocol. By concretely structuring and deploying leverage into the Terra ecosystem, those managerial decisions had a measurable impact on the sequence and severity of LUNA's market failure.