There is leverage from lending BTC for income, but if holders fear counterparty risk and instead pull their coins off exchanges that will only squeeze the shorts and drive the price higher, potentially much higher. I don't think anyone really knows how much short leverage is out there.
If they fear counterparty risk, they will cause a stampede and cause counterparty defaults.
The slowdown in buying from n00bs, can cause the price to drop, which will cause the enriched shorts to pile on (cash out their initial investment and gamble the profits) overshooting to the lower low bottom. Plus all the copycats chasing the trend especially with the "world is falling down" hysteria.
V bottom on steriods. Buy the bottom same as in 2009.