That's exactly what makes me wondering as these kind of price pump and dump is common with crypto coins but why do these users lose their mind with a simple price pump as bitcoin has surged for more than 100% in last couple of months but worried about just a dump of 10% which is jut temporary
The reason for people to start panicking is that they didn't buy at previous levels, but just at the recent peak. From there they don't care about how much Bitcoin has gone up in value prior to their buying moment.
The only important thing for them is how the market moves once they finally bought Bitcoin, which is at peak levels mostly. If the market starts dropping, they fear that they will lose more, and for that reason start selling.
It's an attempt for them to prevent even higher losses, but they always buy back in once the price has gone back up again, which only results in them ending up with a lower number of coins ~ buy high sell low is destructive.