The “10am Manipulation” and the Terra/Luna Collapse
At the center of the case lies a practice dubbed the “10am manipulation” (or “10am dump”). For months, traders had observed abnormally high and recurring selling pressure on Bitcoin, precisely at 10am New York time.
Suspicions quickly turned to major institutional players, and the name of Jane Street began circulating insistently. The theory is simple: by selling massively at a precise time, it’s possible to artificially drive down the price and then buy back at a lower cost, a practice comparable to insider trading if based on non-public information.
The connection to the Terra/Luna collapse, which wiped out $40 billion in just a few days in May 2022, is even more troubling. According to a lawsuit filed in February 2026 by the bankruptcy administrator of Terraform Labs, Jane Street allegedly used confidential information to anticipate and accelerate the fall of UST, the algorithmic stablecoin of the ecosystem. The lawsuit details how, just minutes after Terraform Labs quietly withdrew $150 million in liquidity from UST, a wallet linked to Jane Street allegedly sold $85 million worth of UST, triggering panic and the fatal depegging of the stablecoin.
The Impact on Bitcoin and Market Reaction
The announcement of the lawsuit against Jane Street had an unexpected and spectacular effect on the market. On the very day the case was made public, the infamous “10am manipulation” did not occur. Instead of the usual drop, Bitcoin experienced a strong surge, climbing to $66,200. For many observers, this correlation is anything but coincidental. The sudden halt of massive 10am selling, coupled with news of the lawsuit, was interpreted as confirmation of the suspicions weighing on Jane Street.
The Jane Street case, if the allegations are confirmed, could have profound and lasting consequences on the cryptocurrency ecosystem. It highlights the need for stricter regulation to protect investors against market manipulation and insider trading.
While Jane Street denies the accusations, calling the lawsuit “desperate and baseless,” the market’s reaction seems to indicate that the crypto community has already formed its opinion. The long-term impact on confidence in Bitcoin and other cryptocurrencies will depend on how this case is resolved and what measures are taken to prevent such conduct in the future.
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