A new investigation into the collapse of Terra (LUNA) and the UST stablecoin turns things around using statistical mechanics techniques used in particle physics studies. The study, conducted at King's College London, focused on trading events and orders occurring during the crash. By viewing the events as physical particles, the researchers gained a deeper look into the root causes of the Luna market crash and the coin's microstructure.

According to the researchers, this method allowed them to uncover "common examples of spoofing and layering in the market" that largely contributed to the Luna flash crash. The team then developed an algorithm to detect layering and spoofing.

The researchers believe that their work can be used as a basis for studying market microstructure in finance. The Luna flash crash occurred just eight days after Terra co-founder Do Kwon said 95% of cryptocurrencies would fail and that there was "fun in watching companies die."