{"id":110487,"date":"2025-11-04T22:55:57","date_gmt":"2025-11-04T22:55:57","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=110487"},"modified":"2025-11-04T22:55:57","modified_gmt":"2025-11-04T22:55:57","slug":"stream-finance-loses-93-million-as-stablecoin-xusd-collapses","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=110487","title":{"rendered":"Stream Finance Loses $93 Million as Stablecoin XUSD Collapses"},"content":{"rendered":"

Stream Finance has <\/span>been thrown<\/span> into crisis after revealing that an external fund manager lost around $93 million of the <\/span>platform\u2019s<\/span> assets. <\/span>The news sent shockwaves through its ecosystem, triggering a rapid <\/span>sell\u2011off<\/span> and causing its stablecoin, XUSD, to plunge by nearly 77 <\/span>percent<\/span>.<\/span> The collapse has left users stranded with frozen accounts and a trail of unanswered questions about how such a massive loss occurred.<\/span><\/p>\n

The Domino Effect Behind the Collapse<\/span><\/h3>\n

According to Stream Finance, the missing funds originated from assets managed externally across various yield farming<\/span>\u00a0and investment strategies.<\/span> Once the loss came to light, the protocol immediately froze deposits and withdrawals to prevent further damage. <\/span><\/p>\n\n

Stream Finance has disclosed a $93 MILLION Dollar Loss.<\/p>\n

Stream Finance was interviewed on Taiki Maeda channel.<\/p>\n

A Young man was in charge (shown in the interview), and he had run up an account from very small.<\/p>\n

He had great trading skill ability and crypto market\u2026 pic.twitter.com\/DNzOAo9PvZ<\/a><\/p>\n

\u2014 yourfriendSOMMI (@yourfriendSOMMI) November 4, 2025<\/a><\/p>\n\n

The fallout hit hard. XUSD, a token designed to maintain a $1 peg, nosedived to roughly $0.30. The <\/span>platform\u2019s<\/span> total value locked also crumbled from about $204 million at the end of October to just $98 million. In the world of decentralized finance, such a drawdown is enough to destroy trust overnight.<\/span><\/p>\n

How It All Fell Apart<\/span><\/h3>\n

Stream\u2019s<\/span> model was built<\/span> on users depositing collateral, cash, or crypto, which was then allocated into different strategies, such as market-making<\/span>\u00a0and lending. When the fund manager mismanaged or lost assets, <\/span>the collateral<\/span> backing weakened dramatically.<\/span><\/p>\n

Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.<\/p>\n

In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive\u2026<\/p>\n

\u2014 Stream Finance (@StreamDefi) November 4, 2025<\/a><\/p>\n\n

Without proper support, <\/span>XUSD\u2019s<\/span> peg unraveled, <\/span>and<\/span> panic spread fast across the community. The complex network of leveraged positions accelerated the loss, illustrating the fragility of layered DeFi systems <\/span>when transparency is lacking.<\/span><\/p>\n

DISCOVER: Best New Cryptocurrencies to Invest in 2025<\/a><\/strong><\/p>\n

The Fallout Across DeFi<\/span><\/h3>\n

This crisis has once again exposed the vulnerability of yield\u2011driven DeFi protocols. Investors are realizing how quickly things can spiral out of control when protocols rely heavily on third\u2011party fund managers and aggressive strategies. What started as a single failure has now become a cautionary tale across the industry. <\/span><\/p>\n

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