FTX’s bankruptcy proceedings faced a major oversight last year when the estate liquidated its position in AI innovator Cursor for a paltry $200,000. At the time, the move seemed like standard housekeeping, but recent developments have transformed that decision into a financial tragedy of epic proportions.

Following a significant valuation spike linked to SpaceX, Cursor is now valued at a staggering $3 billion. This drastic surge highlights the precarious nature of distressed asset sales, leaving creditors to wonder how much more could have been recovered had the estate held onto the now-lucrative asset.