I do not think huge money flowing in and flowing out of the market is  a bad thing.  I think it is a normal occurrence in a market.  Whales that bring huge amount of money brings demand to the coins making its price spike which by then create interest to most of the bystanders and making them to join the market because they FOMO.

Huge funds leaving the market because whales cash out is also not a bad thing, it gives a window for another batch of bystanders who wanted to join the market at a lower price, which can trigger market recovery and eventually turned into hype.  

So having a cycle like this is not bad for the market but instead, it gives life to it.