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WLFI borrowing nears $5.1B cap with risky collateral loops, sparking market sell-off and price drop.

Market News
13 Apr 2026
AMBCrypto
View Source
Bearish
pluang ai news

World Liberty Financial (WLFI) has pushed its borrowing close to the $5.1 billion collateral cap, creating risky loops where borrowed USDC is reused as collateral. This leverage strain has caused investor panic, leading to significant outflows and a 20% price drop for WLFI. Market indicators show continued bearish pressure, while governance concerns add to uncertainty. WLFI faces a critical support test at $0.07, needing a recovery above $0.1 to stabilize.

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