It was the same situation with LTCM, with their counterparties (large banks) rushing to liquidate before LTCM became insolvent, which the Fed feared would send shockwaves through the financial system. The banks quickly, collectively agreed to do the right, responsible thing and stopped the fire selling, and injected some emergency capital into LTCM, and then gradually unwound LTCM's postions (and made money in the process).
It was the same situation with LTCM, with their counterparties (large banks) rushing to liquidate before LTCM became insolvent, which the Fed feared would send shockwaves through the financial system. The banks quickly, collectively agreed to do the right, responsible thing and stopped the fire selling, and injected some emergency capital into LTCM, and then gradually unwound LTCM's postions (and made money in the process).