Look at what happens when an exchange fails. Celsius creditors have recovered about 64.9% of their claims so far, and FTX paying back roughly 119% of petition-date claims is the exception, not the rule. That gap is your material reason.
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Coinbase and Kraken users unaffected.
It's very misleading to say FTX paid119%. The repayments were based on the bitcoin price on the day of the bankruptcy filing. If you had 1 BTC on FTX, your got about $16,800. Getting "119%" would be $20,000. The first repayment was on Feb 18 2025. Bitcoin was at $95,000. So you could buy back less than 1/4 of your bitcoin