Here is a link to a Wall Street Journal article regarding Three Arrows Capital Ltd. Due to hedge investments, consequences happened.
Just a reminder about "Not your Keys, Not your Crypto" rule of thumb. If you give your crypto to a different entity where you do not have control of your crypto, beware.
This leads to a larger question regarding centralization vs decentralization. Would you funds be safer if the same thing happened in a decentralized platform?
All Crypto platforms are not created equal. Read the article and draw your own conclusion.