so how will the price be effected when bitfinex longs start from 0 and grow back to 40million?
and how will demand be met if everyone is busy withdrawing coins out of bitfinex?
Bitfinex is talking about possibly processing withdrawals manually, and delaying the reintroduction of leverage until after withdrawals and normal trading have been reintroduced. Doing manual withdrawals will be as slow as a snail, and they can halt them (and a bank run) at any time with a slippery excuse.
https://www.reddit.com/r/Bitcoin/comments/4wng2j/site_relaunch_bitfinex_blog/d6as7kx