The problem is the same as with other bank runs: when people withdraw and there are not enough reserves (lets say temporarily - for example when the reserves ar

The problem is the same as with other bank runs: when people withdraw and there are not enough reserves (lets say temporarily - for example when the reserves are too illiquid) the ratio of reserves to obligations diminishes further - so when people get suspicious it will get into the same death spiral - more suspicious -> more people withdrawing -> the rations become worse -> it gets more dangerous -> more suspicious. Eventually there will only be illiquid assets left and a fire sale will get a small fraction of value back. But yeah - initially it should go slower than LUNA.