A political problem can happen anywhere including the United States, I wouldn't call that an outlier.

That it happened is the outlier, not the possibility that it could happen.

> their ability to delta hedge with synthetic contracts to peg your money to USD?

What's being delta hedged?

Delta is the derivative of the price of an option with respect to the price of the underlying. Delta hedging is offsetting your option/derivative delta with some other source of delta, typically the underlying.

Pardon me, I was confused about who was delta hedging what with Abra, given the paucity of non-linear anything around cryptocurrencies.