stablecoin glitch

The term **"stablecoin glitch"** generally refers to a technical or market malfunction that causes a stablecoin—a type of cryptocurrency designed to maintain a fixed value, often pegged to a fiat currency like the U.S. dollar—to lose its intended price stability. This can happen due to smart contract errors, oracle failures, liquidity issues, exchange malfunctions, or sudden imbalances in supply and demand. Such a glitch may result in the stablecoin temporarily trading above or below its peg.