Actually I don't see anything crazy here at all. While there must be folks that are now "underwater" in terms of actual profit from mining, they may well not think it's permanent and see if they can make it up later (with a higher BTC price). Folks that are still "above water" might think they can drive out some weak miners and do better later. They can't adjust the price of BTC, but maybe they can get better transaction rates in the future?

Mining still remains a "queens race" to the bottom in terms of lowest cost for actual delivered hash rate. That means the most efficient hardware, lowest electric rates, stable surrounding government, and stable infrastructure costs and availability.

Eventually something will have to change, but for the next few months, it's all a "game of chicken". BTC is of course the wild card and affects all players pretty much the same way.