Liquid Bitcoin Redemptions Stay Frozen at 85.8% Reserve Coverage

The distinction Liquid is drawing matters: it is treating full backing, not partial coverage, as the precondition for reopening peg-outs, which keeps the shortfall itself from becoming the exit mechanism. For holders, the practical effect is that the reserve gap is now an operational problem rather than a market one — there is no redemption channel through which it can be arbitraged or resolved. The open question is what the security review actually covers and whether reserves are rebuilt before redemptions restart, since the order of those two events determines who absorbs the 603 BTC gap.