If you think about it, it was actually a positive move to temporarily block withdrawals. This kind of makes the market calm down a little, so that everything doesn't go into panic. In fact, it is a traditional strategy, which even occurs in the traditional stock market, to block negotiations on an asset, so that people do not act on impulse.
It's the exact opposite: by blocking withdrawals, the only option left is selling on that exchange. That leads to panic selling and a huge drop in price. The proper way to prevent panic trading is a
trading halt. Ironically, that's the exact opposite of what Binance did. Makes you wonder....