FTX isn't collapsing because of "bad" business or CZ. It's because they committed crimes

1) They can't pay back customers

This means they stole customers funds!

FTX isn't a fucking bank. They aren't supposed to have fractional reserves. They arn't allowed to lend out your assets. They are an Exchange. They are supposed to have all customers funds covered 1:1. Anything apart from this means they were committing fraud

2) They inflated thier Balance sheets

This is simple enough. If 1) is true then it means FTX is insolvent. They can't pay back their creditors. Namely customers who they lied to that the funds were available

Alameda also inflated its Blc Sheet by increasing the value of its own assets. Thus pretending they are Solvent. A little company called ENRON did this too. They used this inflated Blc to get credit to gamble on crypto

3) They traded against their customers

They were using the data from FTX buy and Sell orders plus your own money they took! To move the market against you. They used your own money to fuck you

FTX was going to collapse regardless