I thought the Fed was set up to keep this thing from ever happening?

SVB should have been made stable with a few swaps... why didn't this happen?

In my opinion this is a take down of the small banks.
The Fed raising rates in an economy that is suffering from supply issues... to "fight" inflation... either they are idiots or evil.

Add on top of that these people seem to be going after crypto on/off ramps.

No, things are not what they are being reported as in the MSmockingbirdM