When a major cryptocurrency exchange experiences technical failures, security breaches, or trading restrictions, it can create panic among investors. In the case of a security breach, investors may lose confidence in the safety of their assets, leading to a mass withdrawal of funds from the exchange and potentially from the cryptocurrency market as a whole. Trading restrictions can also disrupt market liquidity and trading strategies, causing prices to become more volatile. For example, if an exchange suddenly restricts trading of a popular cryptocurrency, it can lead to a situation where supply and demand are not properly balanced, resulting in sharp price movements.