On Wednesday, Silicon Valley Bank was a well-capitalized institution seeking to raise some capital.

Within 48 hours, a panic induced by the very venture capital community such as Peter Thiel that SVB had served and nurtured ended the bank’s 40-year-run.

Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. Prior to being shut down by regulators, shares of SVB were halted Friday morning after falling more than 60% in premarket trading following a 60% declined on Thursday.

The roots of SVB’s collapse stem from dislocations spurred by higher rates. As startup clients withdrew deposits to keep their companies afloat in a chilly environment for IPOs and private fundraising, SVB found itself short on capital. It had been forced to sell all of its available-for-sale bonds at a $1.8 billion loss, the bank said late Wednesday.

The sudden need for fresh capital, coming on the heels of the collapse of crypto-focused Silvergate bank, sparked another wave of deposit withdrawals Thursday as VCs instructed their portfolio companies to move funds, according to reports. A bank run at SVB could pose an existential threat to startups who couldn’t tap their deposits.

SVB customers said they didn’t gain confidence after CEO Greg Becker urged them to “stay calm” in a call that began Thursday afternoon, and the stock’s collapse continued unabated, reaching 60% by the end of trading. Importantly, Becker couldn’t assure listeners that the capital raise would be the bank’s last, said a person on the call.

“The failure of @SVB_Financial could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital can’t provide a solution, a highly dilutive gov’t preferred bailout should be considered.” Bill Ackman, CEO Pershing Square.

Ryan Falvey, a former SVB employee who launched his own fund in 2018, pointed to the highly interconnected nature of the tech investing community as a key reason for the bank’s sudden demise. Prominent funds including Union Square Ventures and Coatue Management blasted emails to their entire rosters of startups in recent days, instructing them to pull funds out of SVB on concerns of a bank run. Social media only heightened the panic, he noted.

“When you say, `Hey, get your deposits out, this thing is gonna fail,” that’s like yelling fire in a crowded theater,” Falvey said. “It’s a self-fulfilling prophecy.”

“It looks like Peter Thiel paid to put out a press release about SVB earlier today. Was he shorting the stock? Any insights here? Please share. #SVB” quoted by a journalist seeking information on Twitter.

Now, thanks to the bank run that ended in SVB’s seizure, those who remained with SVB face an uncertain timeline for retrieving their money. While insured deposits are expected to be quickly available, the lion’s share of deposits held by SVB were uninsured, and its unclear when they will free up.

“The funniest thing about SVB Financial $SIVB is that insiders have been dumping stock aggressively for months. These dudes knew their bank was going under and they were trading on insider information. Heroes. Pure Alpha Male move here!” on possible insider trading reports.