If they don't get a bailout that's 8% of USDC's reserves going tits up, circle can try and limit redemptions to avoid the biggest sellers clearing out what liquidity they have but then they run the risk of people dumping USDC for other stablecoins or bitcoin to try and get out.

If they can't raise to cover that shortfall of 3 billion then it gloves off and all the algo stablecoins and coins with markets to USDC are going to take a clobbering as people try to unwind any exposure.

Cheap sats for us though, so there's that Silver lining! If this keeps up im liking bitcoin at 12k