The $300 Trillion Dollar Whoopsie Ft. Morgan Krupetsky & Raagulan Pathy

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Oct 20, 2025

Morgan Krupetsky, VP of Business Development at Ava Labs, and Raagulan Pathy, CEO of KAST, dive into a whirlwind of blockchain finance topics. They dissect the recent flash crash, revealing issues with market liquidity and oracle failures. The duo reflects on the implications of the $300 trillion PYUSD minting mishap, emphasizing operational controls. They also discuss the evolving role of corporate treasuries in stablecoin adoption and the risks surrounding synthetic stablecoins, all while exploring institutional confidence in the crypto landscape.

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INSIGHT

Flash Crash Was A Perfect Storm

A Friday tweet and thin weekend liquidity triggered a rapid crypto flash crash and the largest-ever liquidations.
Desynced oracles, evaporating market depth, and API congestion created a liquidation death spiral across perps and spot.

INSIGHT

Oracle Choice Amplified Market Moves

Oracle choice mattered: Binance referenced its internal order book rather than deeper on-chain liquidity, amplifying perceived depeg risk.
That oracle lag made USDE look impaired and increased collateral-driven liquidations.

INSIGHT

Synthetic vs Cash‑Backed Stablecoins

Synthetic stablecoins differ materially from cash-backed ones and are inherently more off-peg due to their hedging mechanics.
Small reserves versus large liabilities raise systemic risk if defaults exceed modest backstops.

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On Ep. 53 of Tokenized, Simon Taylor, GTM @ Tempo is joined by Morgan Krupetsky, VP of Business Development for Onchain Finance @ Ava Labs and Raagulan Pathy, Founder & CEO @ KAST to discuss the flash crash, market liquidations, $300 trillion PYUSD accidentally minted and more!

Timestamps:

00:00 Introduction
02:23 The flash crash and market liquidations
07:41 Market structure and synthetic stablecoin risks
13:14 Institutional perspective on crypto market maturity
18:19 Coinbase and Mastercard potential acquisition of BVNK
24:54 Corporate treasury as a growing stablecoin use case
30:26 Major banks exploring G7 currency stablecoins
32:36 Debate on bank-issued stablecoins vs. tokenized deposits
39:10 Inefficiencies in traditional cross-border dollar settlement
40:31 $300 trillion PYUSD accidentally minted

Tokenized is sponsored by Visa

A world leader in digital payments, Visa is bridging the gap between traditional financial institutions and innovative blockchain networks, helping players in the payments ecosystem navigate the ever-evolving world of tokenized fiat currencies with confidence and ease. Learn more at visa.com/crypto.

Tokenized is presented by Bridge, a Stripe company.

Just like the internet made information global, stablecoins are making money global. And Bridge, a Stripe company, is the infrastructure powering that shift. Built for speed, scale, and simplicity, Bridge helps businesses send, store, convert, and spend stablecoins instantly, all without borders or having to navigate the complexities of crypto. Learn more at bridge.xyz

Tokenized is also presented by Fireblocks

With over $100 billion in monthly stablecoin volume, Fireblocks powers stablecoin strategies at scale with infrastructure that enables PSPs, fintechs, remitters and banks to issue, move, hold, and manage stablecoins. And it’s all done securely, at scale, and with built-in compliance. Learn more at fireblocks.com

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We’d also like to remind you that the views or opinions of our contributors today are their own and do not necessarily reflect those of the companies they are representing. Nothing we say should be taken as tax, financial, investment or legal advice, do your own research!

Music by Henry McLean