25th February, 2026 – Wall Street firm Jane Street has become crypto’s biggest villain overnight. Thousands of LUNA/USTC holders are flooding social media with memes, rage threads, and conspiracy theories after a Feb 23 bankruptcy lawsuit accused the firm of insider trading and market manipulation during the 2022 Terra collapse.
The lawsuit claims Jane Street used non-public information to front-run the $40B death spiral, profiting millions while worsening the crash, making it public enemy #1 on Twitter and Reddit in under 48 hours.
High Signal Summary For A Quick Glance
- The backlash is driven primarily by social media sentiment, not new legal or regulatory developments.
- No changes have occurred to LUNA, USTC, or broader crypto market structure or trading mechanics.
- Jane Street has publicly denied allegations and is preparing a formal legal defense.
- Highlights how crypto social media can revive past scandals and influence sentiment cycles.
- Retail traders: Amplifying backlash through memes and threads tied to 2022 Terra losses.
- Long-term holders: Terra victims feel vindicated, while broader holders see revived manipulation concerns.
- Institutions: Jane Street faces reputational scrutiny; other HFT firms may face increased public pressure.
- Builders and crypto market: Rising calls for transparency widen the divide between retail and TradFi participants.
Events Leading to the Lawsuit
On February 23, 2026, Terraform Labs’ bankruptcy administrator, Todd Snyder, sued Jane Street in Manhattan federal court. The lawsuit claims Jane Street used insider information from a former Terraform intern to pull $85 million out of UST just hours before Terraform’s massive withdrawal in May 2022. This allegedly helped trigger the Terra collapse, which wiped out over $40 billion.
Within two days, Jane Street became the target of rage on crypto Twitter and Reddit. People who lost money in 2022 are posting memes, threads, and conspiracy theories linking the firm to market crashes and profiting from big moves in BTC and ETFs. Jane Street calls the accusations “baseless,” but social media has already labeled it crypto’s top villain this week.
What Happened and When
May 2022
Feb 23, 2026
Feb 24–25, 2026
TBD
X (Twitter) Reactions
Crypto Twitter exploded with raw anger and conspiracy-fueled memes within hours of the Feb 23 lawsuit filing, turning Jane Street into the week’s top villain. Retail users flooded timelines with posts calling them “vultures,” “10 AM wick masters,” and claiming “they crashed Terra to buy the dip.” Threads linked the firm to BlackRock ETF flows and past BTC crashes. ZeroHedge’s coverage received thousands of reposts.
Indonesian crypto accounts explained the story for local audiences. Big accounts like @Crypto_Crib_ and @FirstSquawk amplified the drama with screenshots of the claims. Even as Jane Street called the suit “baseless,” the sentiment was overwhelmingly “finally they’re exposed,” creating a perfect storm of 2022 trauma and fresh 2026 FUD.
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What Readers Should Watch Next
- Social media: Track volume and sentiment on Jane Street over 24–48 hours to see if the hate wave peaks or fades.
- Jane Street response: Any official statement or legal filing could quickly change the narrative.
- LUNA/USTC markets: Watch price and volume over the next 72 hours for short-term FUD dips and rebounds.
- New developments: Leaks, court documents, or posts by big accounts could reignite the social media fire.
