Now I understand what FUD really looks like. CZ tweet, FTX team reply with confidence, media interpret it with some analysis and datas, twitter begins the trend and the war starts, boom things begin to fall apart and more bad news come in, the hell is short off the market, confidence is lost and a free fall continues with more FUD. We're coming back better, we just need to root out bad actors.
The market won't fall apart if FTX had done its thing instead of mismanaging the client's fund. It is initially the FTX management's fault that the market is currently in this state. The failure of the management of FTX brings FUD to a lot of investors making them sell their holdings and exit the cryptocurrency industry. Which resulted in sudden crash of price of many cryptocurrency especially Bitcoin market.
HODL! Newbies always asking if 
Yeah only a paper loss to those who hodl their coins, unless they sell, the loss will never realize. It is good enough if we can have the patience to wait for the market's next bull run. Because bull run is the sweetest run of the market where we can see and realized our profit target.
I can really see the dropping scenario after the FTX issue. It was the FUD wins again to the mindset of the people. However, it was not the end of the crypto journey, things like this will certainly come sometime. Unfortunately, many were too emotional about it and think selling their Bitcoin for safety. I could still understand that situation as I also had that feeling before. Panic will appear in your mind if you are not really familiar with the market.
Weak hands will surely be shaken if they witness the collapse of FTX and the losses the users and investors of FTX. Imagin seeing people lossing more than 95% of their holding's value. Weak hands will surely cowers and will immediately sell their holdings.
They are too emotional and lack knowledge about crypto market being cyclical. If they have faith and knew that the crypto market is cyclical I bet they won't be shaken no matter how low the market drop.