Jane Street Lawsuit Fuels Late Double-Digit Pop in Terra Luna Classic
Terra Luna Classic (LUNC) surged 15.5% in 24 hours and nearly 30% over two weeks following a lawsuit filed by Terraform Labs’ bankruptcy administrator against trading firm Jane Street. Spot buyers drove the rally, and open interest in derivatives jumped from $100 million to $160 million, signaling a possible short squeeze. The lawsuit alleges Jane Street used insider information to profit during the 2022 TerraUSD and LUNA collapse, allegedly contributing to $40 billion in losses. This legal action has renewed trader interest and speculation that the case could shift market perception, compensate legacy holders, or drive further price gains. Analysts note that continued spot buying could extend the rally, though the lawsuit’s outcome remains uncertain and could significantly impact sentiment. LUNC’s climb coincides with a broader crypto rebound, with traders increasingly optimistic about further gains, as seen by increased bullish bets on Bitcoin’s price.
