Tera Portfoy Yonetimi AS said two funds with 366 billion liras ($7.5 billion) in assets failed to meet redemption requests, the second Turkish asset manager to default this week. Defaults hit the Tera Portfoy Money Market Fund (TP2) and Tera Portfoy Equity Intensive Fund (THF), per filings to Borsa Istanbul. The funds had drawn large inflows after posting top returns.

The news followed Pusula Portfoy’s default, sparking a rout. The Borsa Istanbul 100 Index fell as much as 7.7% Wednesday, triggering a circuit breaker, before closing 5.5% lower—its biggest two-day drop since March 2025.

Separately, Istanbul police raided brokerage Info Yatirim AS and detained chairman Namik Kemal Gokalp. Ties to the fund turmoil are unclear. Tera’s funds held portfolios of 224 billion and 142 billion liras. Tera Chairman Emre Tezmen called it an “extraordinary and unprecedented” speculative attack.

The rout follows new regulations from Turkey’s capital markets regulator in August. Atlas Portfoy also limited redemptions. Turkey’s Financial Stability Committee meets Thursday.