When I saw the situation where people's deposits weren't getting the ok for withdrawal (especially after knowing 2 cases of whales who experienced massive issues), I wrote this:
I £^%$%$ am! That shit creeps in anywhere it can find the slightest opening and the exchanges are so wide open to it the make a barn door look small. I'd love to give cryptsy the benefit of the doubt but if they had full reserves there's be absolutely no issue with withdrawals, their business would suffer with these claims but delays kill confidence and they'd do everything in their power to avoid them.
The thought they might be running a fractional reserve scheme has crossed my mind. The question is, in such a scenario, what have they done with people's BTC? And, if the BTC market is oversold due to the fractional reserve practices where BTCs are "supposed" to be in cryptsy, but they have been loaned or sold to pressure price, then what does that mean for BTC's price when clients come back knocking for their BTC?
I'm still wondering whether they could have taken a big BTC stash from their exchange, shorted BTC in another exchange, sold coins, made a self-fullfiling prophecy / market manipulation in absence of serious buying support and then locked profits. But if they had done so, they'd still have the BTCs (and the profit). So what the hell have they done with the BTCs?