This makes a lot of sense, although I wouldn't give them the credit of being so coherent in their understanding/targeting of what they were doing. In my opinio

This makes a lot of sense, although I wouldn't give them the credit of being so coherent in their understanding/targeting of what they were doing. In my opinion the reason it backfired, what they proposed wouldn't merely cause a confidence in crisis, but also implied a fundamental shift in the market and the way it worked, this would also have to be priced in, hence the drop. There was no longer necessarily a "buy the dip, the market will go up at some point".