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For example someone in 2022 puts 10M UST as collateral

and mint 7M VAI that he sells. The day after UST is worth zero. So there're 7M VAI in the wild with zero collateral. Is it pure fiction or it happened already in some ways?

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Yep, fiction as all VAI in the market are currently collaterized. That big whale actually returned all these VAI last year.

In the past Vai wasnt liquidated...neither had a fee to mint it...a lot mistakes made from Swipe Team...Current Team has made the way it should had been since first day...all VAI are minted against colateral...there is a few as well...Soo

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