Expected to see more panic seller going to dump their bitcoin since imagine how huge the amount we can lost if the dump continue,
I think it is a natural thing experienced by most trader. Downturn often result in them having to sell all or some of their asset just to secure capital.
The only thing wrong there if we don't do buy backs after the dump happen since we will lose the chance to earn when market is at the cheaper price.
Buyback after price correct is a strategy to recover losses if the trader has sold all his asset during a downturn. This has been done by many trader and is probably a common thing for most of them. But if they have money in reserve while they are not selling the asset during a correction, then they can also buy more for a chance to recover losses faster if the price rise again.