It is the insolvent jump toward a liquid position

Rebalancing, the key being balance requires reversible flow on the micro agent level, and we only have that in small part.  So, to get back to smooth, we devalue, restructure; and from the new base operate with positive profits, positive flow.  That is how we do reverse, not the same as we do forward, see.  But, if done smoothly (get backwards done with few transaction costs) , the result is a very good approximation to the smoothly reversible.