A run on the bank is a social phenomenon, and "VCs" aren't a singular monolith that acts in concert. The "VCs" didn't want this to happen any more than others.
Regular depositors under $250k also benefit from the upside of their "gamble". Yet we protect their deposits regardless because we want to reduce the systemic risk of bank runs.
Right so when you say "But they benefit from the upside. It's their gamble, not ours." ... Your first sentence is talking about the deposit, then you switch the subject matter and start talking about a VC's equity in their investment? Everything you've written in this thread sounds like morality-laden, anger-laden, fist in the air kind of stuff, where you're criticising your own confusion and using loaded terms in order to push a point. Nothing well reasoned. I'm done here.
