SVB had two entities (or more). A US one and a Cayman one. You could deposit money in the US one (and people did, those people are fine) but then you were subje

SVB had two entities (or more). A US one and a Cayman one. You could deposit money in the US one (and people did, those people are fine) but then you were subject to US rules and taxes. So some people borrowed money in the US, but kept their money in the Caymans. This was not some random happenstance where something outside their control caused cashflow issues causing them to lose money[0]. This was a conscious decision with risks. I hope these people are not made whole. [0] In practice, while not obligated to do so, the FDIC has always repaid people 100% in the situation you described.