The fallout in the cryptocurrency markets continues. Algorithmic pegging is supposed to be the best thing since sliced bread in the financial markets. It also means pegs can be maintained for billions of dollars equivalent without having to have billions of dollars in actual collateral behind the instrument. But, sometimes these pegs cease to work during periods of market duress — and then the shit hits the fan!

TerraUSD is the algorithmic stablecoin that is supposed to maintain close to a 1-to-1 peg to the U.S. dollar. On Monday the value, which also has direct ties to the Luna cryptocurrency, had dipped to under $0.90 on its peg. Then it hit $0.50, and on last look Coinbase quotes had Wednesday morning’s price down 66% at $0.31.

The Luna token, its parity in the peg, was last seen down 97% at $0.8549. It has lost almost its entire value in a week.

The ripple-effect is wide, and the cryptocurrency markets (most of the dollar value of which are not pegged) is feeling the crunch on Wednesday. The moves were exacerbated after the stock market futures fell on the higher-than-expected Consumer Price Index report, but the reality is that this is too big to just be tied to another weak day in the stock market.

This is an instance where a crypto plunge of this magnitude will be creating forced margin call after forced margin call. And what is not a forced margin call may simply be a pain-point exit where many HODLers have to decide that the loss and risk is just too great.

Here is the fallout on the major crypto levels we follow, and fortunately most of these are better than their lows in the last hour.

Bitcoin was down about 8% to $29,566

Ethereum was down about 10% to $2,200

Tether, was down 0.23% at $0.9976

USD Coin was actually up 0.01% at $1.0004

Binance coin was down 14.45% at $282.58

XRP (Ripple) was down 19.1% at 0.4325

Cardano was down about 18% at 0.566

Dogecoin was down about 22% to 0.0913

Yes, the tail can wag the dog… lessons of breaking-the-buck!