Exactly. It's happened many times before. An exchanges goes bankrupt because of their own shady practices or because of a hack, so they either launch a shitcoin and "pay" back their users in this worthless shitcoin instead of bitcoin, or they just print a few hundred million of an existing shitcoin out of nothing to keep themselves solvent. A prime example of this is Bitfinex and Tether, where they printed almost a billion USDT out of nothing and gave it to themselves after they were hacked and insolvent.
Still, people consider USDT trustworthy, it's all the game of valuation, there is a need for the realization that the value we need is not a stable currency it is Bitcoin. I'm afraid until we are gonna learn there will be another.
I couldn't image if Binance is bankrupt, how bad is the chaos affecting Bitcoin holder since most of people hold their funds in Binance.
If this mishap is really based on truth, then the cover of this disaster, i.e., Binance Bankrupt, will be beyond imagination. Why are 150 million people connected to Binance with their assets? If Binance shuts down or goes bankrupt, it may cause a sell-off panic in the cryptocurrency market due to the sell-off in the prices of bitcoin and other coins.
This is the hit I'm talking about, non-custodial holdings are the only solution to avoid it but it's a hard job to educate people for the possible outcomes. SAFU is not a sign of reliability, it point out something better to make an exit.