I think is more like "tl;dr read the fine print"; not about the leverage. I think the rules of that particular note stipulate that 80% drop in value (it dropped more than that) triggers liquidation event. So you can't wait out the plunge. If I understand correctly Credit Suisse walks away, closes down their hedges, most likely loses nothing. And your shares go to 0.
Yeah you are right. More details are coming out and it looks like there is some shadiness because Credit Suisse was the custodian AND largest shareholder. See this article: