Why and HOW is it possible for bitcoin to dump that much that fast?
That's the market in action, dude. Buying and selling, and it looks like there are more sellers than buyers at this particular moment--this is bitcoin, which is notorious for its volatility. It's gained and lost at least this much percentage-wise since I've been into it, which has been a few years now. This isn't exactly bubble behavior, just volatility.
The bullish way the market is right now, I'd probably say that this is a dip you'd want to buy, and I don't often say "buy the dip". I think this is just a pullback, which also isn't surprising given how fast bitcoin rose in the past couple of weeks.