We're talking about a regulated exchange, which needs to have their AUDITS in order. This means, they need to have RESERVES in both crypto (bitcoin) and fiat. The theorem I gave is just as it is, theory to proof an argument. With a backlog as they have, I imagine it will take a lot of time, hence money. So if liabilities > assets without having enough in reserves, they are in trouble.

Do you really think Bitstamp can in infinity swap bitcoins for fiat? Where do they sell their bitcoins to fiat to without having it on their own (worst case, let's say)? You imagine buyers always pay in fiat, you're wrong. A lot of active people have bitcoins for free or for sub $10 that are bailing out for some now. If there are no more new people depositing fiat, how are you suppose to pay out all the withdrawals. Let's say Bitstamp has $100 million in reserves and $1000 is requested to withdraw. You get my point?