That's their "plan", yes. They also seem to be kicking some of that debt on shitcoin developers.
That's what I was worried about.. that my theory was their plan. It won't work because of the paradox they've now entered. It doesn't matter even if they could get back to a 0 balance, people won't trust them anymore, no trust=no transaction fees to payback the loans. Smart people won't loan them the BTC, = no way the exchange will ever work again.
Coin by coin you'll see it go insolvent.. mark my words on that one. It's dead. Trade out and leave now while you can. I'm already hearing a few folks had issues with altcoins over the weekend..