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This paper develops a formal theory of cognitive debt, where using AI as a substitute for first-principles reasoning builds up unverified obligations that lead to systemic fragility and a cognitive Minsky moment, showing that decentralized equilibrium over-adopts substitutive AI without accounting for externalities.
A trader rumored to be a Trump insider opened a $92M short position on Ethereum with 20× leverage, signaling expectations of a major price drop.