While I agree with the first part I don't see what it would change for the second: what is happening with Celsius is a good old bank run, and they have only like 10% liquid reserves. How long would it take to a well regulated bank be able to make all their assets under management liquid?
Their "protections" are FDIC, which is basically a government insurance fund. With regards to Celsius, we don't know if they lost user funds, or if they are having a liquidity crisis. There's more detail here [0], but I think it's certainly possible that they do have user funds and simply cannot handle withdrawals for the majority of their user base all at once despite having the funds (much like a bank).
