This is a little reminiscent of the .com crash all over again. Some really bad companies that had massive VC backing but no real reason to exist ended up not producing anything and collapsing under the weight of their own hype and mismanagement. Those failures created some panic and a run in the market that impacted scores of companies stock prices and a sell off that drove many of those companies toward restructuring or completely out of business. There were many underlying reasons for this event, but the panic induced run was the biggest problem. This is what the feds are trying to prevent here, a panic induced run. Based on responses from some in this thread they are taking appropriate action and protecting people from their own over-reactions.
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