Whats up is that people converted to BTS during the crash, which is absolutely what they should do. And those short bitUSD (thus long BTS on margin) were forced to cover due to margin calls.
The fact that bitAsset supplies must shrink as BTS market cap drops is exactly the thing that makes it not a ponzi. This is why BTS is better than Nubits - because supply of bitAssets decreases when demand goes away (instead of the value of bitUSD just going to 0).
Also, the idea "3x bitUSD market cap = BTS value" is not accurate. The BTS market cap relative to bitAsset market cap only shows the potential for how much bitAssets could be created/supported at that time. Back before bitAssets even existed, BTS had a market cap. The lack of bitAssets didnt imply the cap should be 0.
Bitcoin has no bitAssets. This does not mean that bitcoin is worth 0.