Stablecoin price stability mechanisms can indeed face challenges from unexpected market events. Most stablecoins, like USDT or USDC, maintain their peg through collateralization, often backed by fiat reserves or cryptocurrencies. However, sudden market crashes, liquidity shortages, or regulatory shocks can disrupt these mechanisms. For instance, if reserve assets lose value rapidly or redemption demands spike, the peg may waver. Algorithmic stablecoins, relying on smart contracts to balance supply and demand, are particularly vulnerable to black swan events, as seen in the 2022 TerraUSD collapse. Extreme volatility can overwhelm these systems, causing de-pegging or loss of trust. While robust reserve management and transparency can mitigate risks, no mechanism is immune to severe market disruptions.