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USD1 Briefly Depegs Before Rebounding as WLFI Alleges Coordinated Attack

Price quickly returned to $1, highlighting exchange-level volatility on a stablecoin now ranked fifth by market value.

Overview

  • USD1 fell to roughly $0.98 on Binance around 8:15 am ET before regaining parity within minutes, according to Decrypt.
  • Price trackers such as CoinGecko recorded a smaller trough near $0.994, underscoring differences across trading venues.
  • World Liberty Financial said attackers hacked cofounders’ X accounts, paid influencers to spread fear, and opened large WLFI short positions.
  • News outlets covering the episode reported no independent confirmation of the alleged hacks or paid disinformation efforts.
  • WLFI credited USD1’s mint-and-redeem mechanism and full 1:1 backing for the swift recovery, as the WLFI token dropped about 7% and then partially rebounded.