I don't see any evidence the gov't is out there guns ablazin' to take down these small time exchanges or mining contract operators. By all means, make sure you have your ducks in a row, but the impending doom talk is an overreaction.
Yeah, it's a huge overreaction, ginned up by people trying to get their hands on cheap shares. Once everyone realizes that there are no black helicopters overhead things will return to some semblance of normalcy.
I'm also thinking that this has something to do with Creative's mood; he seems to be in a state of dispair and that might affect people's long-term outlook. A huge part of the evaluation of any investment is the team or person behind it. When that entity seems to be pessimistic of depressed, investors might be frightened.