Executive Summary
PSI hit an all-time low of 88 while the Bank Run Gauge cratered to negative 43.2. USDO lost 99.6% of its DEX liquidity overnight. The index has never been here before.
PSI closed at 88, its lowest reading ever recorded, yet the market barely flinched. The index has slid from 94.5 to 88 in five days, falling out of BEDROCK into STEADY for the first time, while $325.88B in stablecoins sat essentially flat on the week, adding just $316M. The disconnect between a deteriorating stability index and a placid market cap is the kind of silence that precedes either vindication or regret.
Stress Fractures. The Bank Run Gauge plunged to negative 43.2, squarely in STRESS territory, its worst print of the week by a wide margin. RLUSD shed $9M net and OUSG lost $3.1M, both at negative 100 pressure against their 30-day baselines. Meanwhile the only notable mint was M at $19.35M, a D-rated coin with a liquidity score of 17. Capital is not flowing to safety; it is flowing to a coin that barely has exit liquidity.
The USDO Problem. USDO's DEX liquidity score collapsed from 45 to 14 overnight as TVL evaporated from $4.5M to under $20K, a 99.6% drawdown on a $49.53M coin. That is not a gradual fade; that is a trapdoor. USDA, at $270.84M and rated ALERT with a cross-source divergence of 92, saw its own TVL drop from $6.88M to $2.45M. Two mid-cap coins losing their DEX depth on the same day is not coincidence; it is contagion-adjacent.
The seven coins rated above B look increasingly like a shrinking island. Nine coins carry F ratings. PSI just printed a number it has never printed before, and the gauge is screaming while the headline market cap yawns. History does not always repeat, but it does keep a ledger.