It's been a while since a major American bank failed overnight, but it probably shouldn't come as a surprise in President Joe Biden's economy. 

According to Breitbart, in what felt like a sudden headline, Silicon Valley Bank (SVB), a massive banking institution for start-ups and some of the biggest Big Tech companies in the country, imploded.

The situation devolved so rapidly that the California Department of Financial Protection and Innovation stepped in on Friday and formally shuttered the bank, which had over $161 billion on deposit.

Reports indicated that venture capitalists, in the past several days, had advised their clients to pull their money from the bank, causing what many describe as an unsurvivable, classic bank run.

What's going on?

While the situation is already devastating for an untold number of companies, it's about to become much worse. It was reported that a vast majority of the deposits of SVB's commercial clients were uninsured.

Breitbart noted:

The Federal Deposit Insurance Corporation (FDIC) said that all insured depositors will have full access to their insured deposits, but that might not be as reassuring as it sounds. Bloomberg reports that more than 93 percent of SVB deposits are uninsured.

At Silicon Valley Bank, north of 93% of the bank's $161 billion in deposits are uninsured per a recent regulatory filing, @MaxJReyes writes.

Follow our live blog for the latest developments on SVB https://t.co/rXLJQRLgMC pic.twitter.com/7T3r0YqoYt

— Bloomberg (@business) March 10, 2023

CNBC noted that it was the second-biggest bank collapse in U.S. history, and it all happened within a 48 hour window of time.

The initial bank run, which cleaned SVB out of some $42.5 billion, happened after it reportedly surprised investors by revealing that it needed $2.25 billion to "shore up its balance sheet."

"This was a hysteria-induced bank run caused by VCs," Ryan Falvey, a fintech investor of Restive Ventures, told CNBC. "This is going to go down as one of the ultimate cases of an industry cutting its nose off to spite its face."

Now what?

There are clearly much deeper problems at play as well, as CNBC noted. The road ahead for many in the industry is looking rough, to say the least.

"The episode is the latest fallout from the Federal Reserve’s actions to stem inflation with its most aggressive rate hiking campaign in four decades. The ramifications could be far-reaching, with concerns that startups may be unable to pay employees in coming days, venture investors may struggle to raise funds, and an already-battered sector could face a deeper malaise," CNBC reported.

For the companies that left their funds in SVB, they face an "uncertain" timeline as to when they might recover some, or all of the funds, especially since most of the funds were uninsured.

For the deposits that were FDIC insured, that money will be ready for dispersment as soon as Monday.