Trader takes $4m short position on TrueUSD as issuer halts mints and redemptions

Following the issuer's decision to temporarily halt mints and redemptions through its banking partner, Prime Trust, a trader has taken advantage of the situation by initiating an on-chain short position on the stablecoin TrueUSD .

Aave's V2 lending platform by depositing 7.5 million USDC, a stablecoin, as collateral. They then borrowed 4 million TUSD, another stablecoin, and promptly sold it for USDC. This strategy of borrowing and immediately selling is frequently employed to establish a short position on a particular asset.

Ethereum user leverages Aave v2 lending platform, deposits 7.5M USDC as collateral, borrows 4M TUSD, establishing a short position.

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