For the most part I agree with all of this post, but there are some key things to be pointed out.

How centralized was it?

This is a super interesting one, because in this case, it was perfectly decentralized. In this case, it was the decentralized permissionless code that failed and caused a death-spiral, not any centralized agent. If we are looking for a centralized agent to blame, all we can do is blame the billionaire entity that saw the weakness and exploited it with aggressive shorts, causing widespread panic.

The fact that Do Kwon secured some Bitcoin to enforce the peg doesn't make it any more centralized. It's just a free market. Anyone can do anything in a free market. If some billionaire said they were going to do the same for HBD, would that make HBD any more centralized? It wouldn't.

The truth is that hindsight is always 20/20

In this case it was known how flawed the system was in advance. Many people talked about how dangerous the debt ratio was. There was no other reason to buy those billions of dollars of Bitcoin to back it up otherwise. Kwon thought this would be enough. It was not (by a long shot).

The lesson people never seem to learn is simple: If it's too good to be true, then it's not true.

This is a lesson that can't be learned in crypto. I was airdropped $2500 for free for every single metamask wallet I used via the Uniswap airdrop. That's too good to be true, yet it was true. Coins going x100 in a year is too good to be true, but it happens literally multiple times a year. It's nearly impossible to distinguish what is real vs what is fake these days. Simply claiming an airdrop on an EVM chain can now steal all the money in your wallet. It's insane.

Did I just write a comment as long as the OP?

God damn it!

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