If this crap had happened to an institution that was audited, protected, and enumerated in US dollars, this whole fiasco would be only a bad day for the Cryptsy owners, not the depositors also.

But you get what you get when you go with a non-fiat currency. It's interesting to me to watch people in the BTC space re-learn the lessons learned by financial systems since the dawn of currencies; at least they're learning them faster in the digital age.