It’s been yet another rough day for crypto platform Voyager Digital (OTCMKTS:VYGVF). Today, VYGVF stock is down nearly 50% amid two key catalysts that have spooked investors.

The first factor investors are pricing in today is news that a Voyager subsidiary, Voyager Digital LLC, reportedly has $665 million in exposure to Three Arrows Capital (3AC). For investors who may not have read about 3AC, this hedge fund recently halted withdrawals, swaps and transfers on its exchange due to liquidity issues. Voyager Digital is now considering issuing a notice of default to 3AC for failure to repay its loan.

Lending money to a hedge fund that may be blowing up is one thing. However, this isn’t the only piece of news driving today’s price action in VYGVF stock. It was also reported that a second Voyager subsidiary, Voyager Digital Holdings, Inc., is in talks to raise more than $200 million to stabilize the exchange “in light of current market volatility.”

Let’s dive into what these announcements mean for investors considering such crypto investments.

What’s Going on With VYGVF Stock Today?

Voyager Digital operates a digital asset brokerage firm, allowing investors in Canada and the U.S. to trade and invest in the crypto market. Like other centralized exchanges, Voyager Digital hoped to pick up market share and grow rapidly, as many of its peers have in recent years.

However, a downturn in crypto prices has hit the company’s share price hard, which peaked at more than $20 per share. After today’s dramatic decline, VYGVF stock can be had for around 60 cents per share. That’s a 97% decline from its peak.

The entire crypto market is in turmoil, as many have noticed. However, the problem — at least in the centralized exchange world — is the level of inter-connectedness seen in this space. Various exchanges park their money in other exchanges, or attempt to earn yield on their holdings via staking or lending protocols. In the case of 3AC, such practices have led the hedge fund to the brink of insolvency, sparking concerns that a sector-wide contagion could be under way.

Indeed, the extent to which Voyager was exposed to Three Arrows Capital doesn’t appear to have been known by the market. This is big news, and has obviously driven many investors to sell VYGVF stock at any price.

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