I still don't understand the point of DeFi, if he had 300k worth of Bitcoin, then why not just sell it? Why take a loan with the Bitcoin as collateral? Isn't Bitcoin supposedly very liquid?
I imagine the reasons are related to either recognizing capital gains or to speculate that bitcoin would keep going up in value and he could sell less of it to settle his debt.
Blockfi isn't defi. If they had used defi, like aave, they would have avoided this whole situation.