DISCLAIMER: Expressed views on this blog are my own.
VCs are greedy and dumb. They don't care about your product. They care about the potential return. It's dumb money. They were dumb enough to cause a bank run at a bank that catered to them. If that's not a sign of collective stupidity, I don't know what else it is.
They all have lines to communicate with each other to prevent this scenario, but they cried to the government in the end. A bunch of babies.