According to online reports, Etha Labs founder @leptokurtic_posted on the X platform that the past 24 hours have been very difficult. Etha Labs processed the largest redemption amount in a single day and released all unrealized exposure to Bybit within one hour after the incident. USDe has never been under-mortgaged. Even if the unrealized exposure to Bybit did not drop to zero within one hour, USDe was still over-mortgaged. It is hoped that this incident will verify some of the design decisions made to reduce the risk to users using OES escrow solutions. The simple design route is to avoid costs and the increased engineering complexity of custodians in the off-chain hedging system. Ethena Labs has not encountered any support losses or redemption request issues.