[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Ignacio Palomera [@MrIPalomera](/creator/twitter/MrIPalomera) on x 100.1K followers Created: 2025-07-19 17:12:41 UTC In 2007, Lehman Brothers reported $XXX billion in assets and only $XXX billion in liabilities. Mind you, they were highly rated and solvent. What the balance sheet didn’t show was $XX billion quietly shuffled off books each quarter using a maneuver called Repo XXX. Here’s how it worked: Lehman temporarily “sold” securities for cash, booked the cash as income and then “bought” the same assets back days later….just clever accounting. The real problem was hidden leverage which was rehypothecated across layers of counterparties with no line of sight and by the time creditors demanded answers, no one could untangle who had claims on what. Confidence collapsed before collateral did. Crypto did not solve this sadly. But crypto revealed it. In DeFi, you can trace recursive leverage through Aave, Lido, Curve, and back. When 3AC and Celsius went under, it wasn’t because the tools were flawed. It was because the data exposed just how entangled they were. Millions in stETH, looped against ETH, repledged for stablecoins until liquidations unwound the entire stack. The difference is auditability. TradFi gives you quarterly reports. Crypto gives you real time ledgers. But neither works unless someone asks the hard question: Who actually owns the risk?  XXXXXX engagements  **Related Topics** [balance sheet](/topic/balance-sheet) [Post Link](https://x.com/MrIPalomera/status/1946619214347034626)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Ignacio Palomera @MrIPalomera on x 100.1K followers
Created: 2025-07-19 17:12:41 UTC
In 2007, Lehman Brothers reported $XXX billion in assets and only $XXX billion in liabilities. Mind you, they were highly rated and solvent.
What the balance sheet didn’t show was $XX billion quietly shuffled off books each quarter using a maneuver called Repo XXX.
Here’s how it worked: Lehman temporarily “sold” securities for cash, booked the cash as income and then “bought” the same assets back days later….just clever accounting.
The real problem was hidden leverage which was rehypothecated across layers of counterparties with no line of sight and by the time creditors demanded answers, no one could untangle who had claims on what. Confidence collapsed before collateral did.
Crypto did not solve this sadly. But crypto revealed it.
In DeFi, you can trace recursive leverage through Aave, Lido, Curve, and back. When 3AC and Celsius went under, it wasn’t because the tools were flawed. It was because the data exposed just how entangled they were.
Millions in stETH, looped against ETH, repledged for stablecoins until liquidations unwound the entire stack. The difference is auditability.
TradFi gives you quarterly reports. Crypto gives you real time ledgers.
But neither works unless someone asks the hard question: Who actually owns the risk?
XXXXXX engagements
Related Topics balance sheet