A recent tweet from Zhu Su, the co-founder of Three Arrows Capital (3AC), has fueled speculations about the hedge fund facing liquidation soon. Zhu Su’s tweet was vague and left many questions unanswered. The CEO said, “We are in the process of communicating with relevant parties and fully committed to working this out.”
Investors Perceive Doom for Three Arrows Capital
Recent on-chain analysis reveals that the hedge fund company has an outstanding debt to pay AAVE protocol. 3AC’s collateral with AAVE will face liquidation if ETH gets as low as $1042. ETH currently trades at $1,180, and 3AC is just 7% away from losing millions of dollars if the company fails to add collateral to its position.
In the last 24 hours, many rumors have been circulating about Three Arrows Capital’s critical situation. Zhu has reportedly deleted his Instagram amidst the heat his company is facing. He also removed every coin from his Twitter bio, and the CEO and his co-founder Kyle Davies have been relatively dormant in their communities.
A Twitter user also accused Three Arrows Capital of dumping more stETH than the Celsius network. Etherscan reveals that a wallet belonging to 3AC exchanged over $32 million worth of stETH for ETH. Lido’s staked ETH still traded at a discount at the time of exchange, with the hedge fund company getting 8378 ETH for 8900 stETH.
Community members are displeased with this line of action, especially as Zhu Su made a misleading statement three days ago. Zhu Su praised stETH, calling it the soundest source of native protocol yield on Ethereum.
Some followers realized the blockchain geek had failed to live up to his words or tweets a few days after his statement. Zhu has also been called out on several occasions for sharing investment tips and acting contrary to his investment tips. Three Arrows Capital investors now await an official statement from the hedge fund to confirm or dismiss the rumors flying around.
