Let's say I make sandwiches and I buy on credit some cooking equipment and I bought on credit some bread, meat, vegetables, etc.

And then my safe gets robbed overnight and I am insolvent.

I am not allowed to then let the cooking equipment vendor come and reclaim his equipment while the unpaid debt to the grocery supplier remains unpaid because I had previously sold the sandwiches and the food is now gone.

When you deposited USDs with BitFloor, you are in the same pool as the person that deposited BTCs.   They are all the same category -- customer assets.

Those with BTCs can get an injunction to freeze the USD funds but apparently nobody cares