The closely watched TerraUSD (UST) stablecoin briefly lost its dollar peg on Saturday, falling to .987 before bouncing back on Sunday. Its sister token, LUNA, fell 10%.

As the largest algorithmic stablecoin, UST has emerged as a major – albeit controversial – backbone of the crypto economy.

This weekend’s depeg was not the first (nor the largest) in Terra’s history, but it marks the first time the algorithmic stablecoin has lost its peg since it embarked on its much-publicized bid to build out Bitcoin and Avalanche reserves.

The depeg did not cause Terra to tap into its Bitcoin reserves on Saturday, as the deployment of hundreds of millions of dollars of rescue capital appeared enough to buoy the token back to around $1.

The de-pegging appeared to kick off with a series of major withdrawals from Anchor Protocol, a lending market that offers high yields to users who deposit UST. Over the weekend, Anchor’s total UST deposits fell from $14 billion down to $11.2 billion (UST’s total circulating supply is $18 billion).

Large quantities of UST were also withdrawn from liquidity pools on Curve, a decentralized finance (DeFi) protocol that allows users to swap between stable currencies like UST. A $150 million liquidity withdrawal came from Terra creators Terraform Labs (TFL). TFL claimed Sunday they made the withdrawal as they were preparing to shuffle around funds between pools, but they re-deposited $100 million after realizing UST had begun to trade a discount relative to other stablecoins.

Adding a tinge of conspiracy to yesterday’s events, a single wallet also raised eyebrows for dumping $84 million worth of UST on Ethereum and $108 million on Binance. This has led to calls from within the Terra community that the depeg was a “coordinated attack.”

Do Kwon, the outspoken founder of Terraform Labs, chimed in on Saturday with a series of jokes and jabs at “anons” circulating “fud” (fear, uncertainty and doubt).