No derp. Let me explain it for you.. the largest accounts are taking interest payments, which means the little accounts would have to be depositing like crazy in order to pay for the large accounts. If the little accounts are depositing like crazy, they aren't going to be the little accounts anymore, which means they really AREN'T depositing enough which means pirate is finding the funds elsewhere... like profits, not ponzi. You idiots think the 7%ers are blind, but damn, you guys are failing basic logic now.
Or pirate is making those interest payments with investor principal both large and small (as I originally said, not enough principal to go around now). If you allow for that possibility, then you can't derive your proof by contradiction ("if little accounts are depositing like crazy, they aren't little accounts. therefore, pirate is generating real profits. ergo sum").
So, therefore, he's been using investor principal to pay large lenders' interest. As long as new deposits come in faster than the interest payments, then the total funds grow and it makes sense for the operator to continue paying interest. When new deposits stop coming, an operator who wants to maximize his personal profit will stop paying interest and you get default.
The lenders doing pass-through have an edge on the timing since they have access to more information. They should withdraw if they see their own deposits slowing.