The question is how would sudden liquidation be covered up? Take an exchange in such a situation owing multiple users a compiled amount, if they take the decision of borrowing from a bank (which the chances are thin based on collateral), the end up switching owed liquidity from their customers to the bank.
There is a high chance they file up for bankruptcy and in the end those who stored their coins there lose them eventually. This is one of the major reasons you need to be careful when choosing exchanges.
Right now they claim they are not insolvent and that they halted withdrawals only because of "compliance suite upgrade". But many people in the crypto community, including me, do not buy that story. That said, when withdrawals start going through again, quite a lot of their users might be scared to use the platform again, and they might pull out, which could put the exchange in danger of bankruptcy.