I'm confused, were they leveraging people's stowed crypto? How can you have a liquidity crisis where you aren't leveraging up? Or is it more than an exchange? A

I'm confused, were they leveraging people's stowed crypto? How can you have a liquidity crisis where you aren't leveraging up? Or is it more than an exchange? Another scam where the billionaire luminary ran away with the cash? Apologies, don't follow crypto