I think this is similar to LTCM in the 90s, which reminded people of the depression era quote: “Markets can stay irrational longer than you can stay solvent”
How so? I mean, you can argue that Russia defaulting was (arguably) irrational, but the market response to it was fairly textbook. I might be wrong, but even if they didn't get killed by margin calls, weren't the losses on their bad bets enough to wipe out any profits the company ever made?