10 A.M. DUMPS: TERRA LAWSUIT ADDS FUEL TO JANE STREET BITCOIN MANIPULATION THEORIES

Speculation surrounding Jane Street’s influence on Bitcoin (BTC) has intensified as of February 25, 2026, following a persistent pattern of market “dumps” occurring daily at 10 a.m. Eastern Time. While traders have long theorized the existence of a coordinated “suppression algorithm,” the scrutiny has been reignited by Terraform Labs’ latest lawsuit. The legal filings allege that Jane Street front-ran liquidity changes during the 2022 Terra collapse, withdrawing and selling $85 million in UST just minutes after Terraform thinned the Curve 3pool. While the firm denies all allegations, the 10 a.m. window which overlaps with U.S. equity opens and ETF hedging remains a focal point for claims of institutional manipulation. The 10 A.M. Pattern: Algorithm or Market Structure? The recurring daily sell-offs have sparked a growing “theory ecosystem” online, pointing to Jane Street as a primary participant. Timing the Open: The 10 a.m. Eastern window follows the U.S. equity market open, a period of peak liquidity where ETF hedging flows, options repositioning, and derivatives rebalancing typically occur.The “Dump Algorithm”: Critics argue that the mechanical nature of these price swings suggests a systematic pressing of the market. However, analysts point out that quantitative firms thrive in high-liquidity windows, and price swings that look “mechanical” may simply be the result of automated fund adjustments rather than a secret suppression strategy. The Terra Connection: Scrutiny Over the 2022 Collapse Terraform Labs’ 2026 lawsuit has provided fresh on-chain evidence that fuels the broader suspicion of institutional exploitation. The $85 Million Swap: Blockchain timestamps show that Jane Street allegedly withdrew and sold $85 million in UST shortly after Terraform removed $150 million from liquidity pools. This sequence played a role in destabilizing the peg.Legal vs. On-Chain Fact: While the timing of the trades is clear, the lawsuit’s core claim that Jane Street acted with insider knowledge remains unproven. Jane Street maintains the collapse was due to Terra’s own “structural flaws and management failures.” Liquidity Sensitivity in 2026 The ongoing debate highlights the extreme sensitivity of the current crypto market to large-scale institutional maneuvers. Institutional Concentration: The Terra episode demonstrated how speed and scale can determine outcomes in fragile, reflexively designed systems.ETF Influence: In 2026, the overlap between traditional finance and crypto via ETFs has only increased the concentration of liquidity around specific time windows. Whether it is “conspiracy or coincidence,” the intraday behavior of Bitcoin is now undeniably shaped by the plumbing of Wall Street. Essential Financial Disclaimer This analysis is for informational and educational purposes only and does not constitute financial, investment, or legal advice. Reports of a 10 a.m. Bitcoin “dump” pattern and the Terraform Labs lawsuit against Jane Street are based on news reporting and court filings as of February 25, 2026. Allegations of market manipulation or insider trading are legal claims and have not been proven in a court of law. Jane Street has denied all accusations of wrongdoing. Bitcoin is an extremely volatile asset, and intraday price swings are influenced by a wide variety of factors, including global macro events, liquidity clustering, and institutional hedging. Always conduct your own exhaustive research (DYOR) and consult with a licensed financial professional before making significant investment decisions in Bitcoin or other digital assets.

Do you think the 10 a.m. dumps are a coordinated institutional attack, or just the natural result of ETF hedging at the Wall Street open?