DIP financing trading slightly below par—say 1-2 points—that's normal market behavior. But getting slashed by a third just weeks into bankruptcy? That's unheard of.

Look at the historical precedents: Satyam, Parmalat, Enron—none of them saw this kind of collapse in their debtor-in-possession facilities. When DIPs get hammered like this so early in the process, it signals something seriously off with the post-petition financials. Either the company's situation deteriorated way faster than disclosed, or someone fundamentally botched the initial analysis.

This isn't just volatility. It's a red flag screaming that the numbers don't add up.