TLDR on why banks in the crypto/VC sector are starting to drop like flies:

- These firms saw their deposits go exponential during the post 2020 bubble

- Due to 0% short end rates, these firms went all in on long duration investments

- As the bond bubble burst, these firms face massive unrealized losses that are forced to be realized in the case of mass withdrawals

- They sell bonds, crystallizing losses, and a reflexive panic for equity holders and depositors ensues.