There's something very visceral about bank failures that leads to a lot of strong emotions and speculation. Kind of the same appeal of watching post-apocalyptic movies. Doomporn or whatever.
A $15B business had liabilities exceed its assets. That's not uncommon, and many businesses can survive that for a time. This one happened to be a bank. And the nature of this particular business has to plan around the self-fulfilling prophecy of contagious visceral fear and panic.
Atrocious risk management by SVB. I'm sure it's worked out before for others in that situation, but holy shit, hedge your risk. It's a stress test that takes 1 tab in a spreadsheet. It's not hard and not complicated. If not interest rate swaps, there are a million other ways to do this. This is not the first time interest rates have shot up and it won't be the last. This is either incompetence or negligence and the market taking care of a very poorly run business. Worst case scenario, if someone values the loan book reasonably, depositors get 90% of their money back, and likely 100% when another bank wins the auction, so the fear is disproportional with respect to the real financial risk - which is $15B of equity and debt wiped out with depositors getting all their money but uncomfortable inconveniences in the meantime.