The Kujira token price has experienced a significant decline, with a drop of up to 40% from $0.97 to $0.57, following the liquidation of the Kujira Foundation's operational wallet. The foundation had previously assumed leveraged liquidity provision positions worth millions of dollars, but these were not effectively managed within its own DeFi platform. In a post-event statement, the team stated that the use of leveraged positions as operational funds was intended to increase liquidity and stimulate trading activity on their decentralized exchange (DEX). However, the reason for the liquidation was the undercollateralization of loans obtained using the team's Kujira (KUJI) token reserve during market fluctuations. This led to the automatic liquidation mechanism being triggered, resulting in a series of sell-offs that ultimately caused the price of collateral assets to decline. According to Pulsar Finance data, the team is currently still owed $2 million in debt.