rewrite this title Jane Street Lawsuit Fuels Late Double-Digit Pop in Terra Luna Classic – Decrypt

Terra Luna Classic (LUNC) has jumped double-digits over the past day, in a late reaction to this week’s lawsuit filed by Terraform Labs’ bankruptcy administrator against trading firm Jane Street.

LUNC surged 15.5% over the past 24 hours and is up nearly 30% over the past two weeks, according to CoinGecko data. The sudden uptick was driven by spot buyers, with derivatives data showing open interest climbing from $100 million to $160 million, per Velo data. As the rally accelerated, futures’ cumulative volume delta plummeted—a signature sign of a short squeeze in play.

The move has “thrust one of crypto’s most infamous collapses back into the spotlight,” Ryan Lee, chief analyst at Bitget, told Decrypt, with traders betting that legal developments could shift market perception or potentially unlock value for legacy holders.

The Jane Street lawsuit

The catalyst traces back to Monday, when Terraform Labs’ bankruptcy administrator filed a federal lawsuit in Manhattan alleging that Jane Street used non-public information to execute profitable trades that accelerated the historic 2022 collapse of TerraUSD and LUNA. The lawsuit claims the trading contributed to approximately $40 billion in losses.

The legal narrative has galvanized interest in LUNC, Lee said, adding that it has “reignited trader sentiment around accountability and potential compensation.”

He noted that some traders are positioning on the belief that positive developments in the case could shift market perception or unlock value for legacy holders. “Headlines about alleged insider trading and renewed scrutiny of one of the sector’s largest historic losses have been correlated with short-term spikes in trading activity and price interest,” Lee said.

If spot-buying activity continues without the price dropping, the rally has a good chance of extending higher. However, Lee cautioned that the ultimate legal outcome remains uncertain.



“If the lawsuit progresses or generates clarity, it may continue to influence sentiment,” he added. “Conversely, any setbacks or dismissals could temper enthusiasm and re-expose LUNC to broader macro pressures.”

LUNC’s jump comes amid a broader crypto market bounce that has brushed off pessimism among traders—at least in the short-term. Users on prediction market Myriad, owned by Decrypt’s parent company Dastan, put a 42% chance on Bitcoin rallying to $84,000 rather than dumping to $55,000, up from lows of 27% on Tuesday.