Yes, well that's true in any system: if your collateral suddenly dips below the value of your loan, there's bad debt. This is not some unique risk of SNX.

The way we handle this (in any system) is with liquidation thresholds higher than 100% (160% currently at Synthetix) and large penalties for liquidation which make saving your collateral more profitable.

We've also seen large liquidations in-action a few times (RIP Synthaman, we still love you), so this isn't a pure hypothetical.

Also, most importantly, the risk of this happening is more like inversely related to the sUSD peg here. You're more likely to have an oversupply of sUSD when SNX price is *up* (though I think demand is the bigger issue here, it's really just users exiting the v2 system faster than stakers).

sUSD depegging is a UX issue, which is why we've taken measures to address the peg, but I think your characterization of them as "emergent" is a bit offbase. You're trying to weave a narrative that the sUSD peg is a systemic concern when it's absolutely not.