This describes exactly what is happening:

"Minsky theorized that an asset bubble has three stages. In the first, so-called "hedge" investors can pay off the interest and principal from their cash flow. Healthy returns push up prices, attracting the "speculative" investors of the second stage, who can meet their interest payments from cash flow with the help of liquid capital markets, but would have to sell off assets to pay off the principal. In the third stage, "Ponzi" investors rush in, relying on the continual appreciation of the value of the asset to pay the interest or the principal.

If the asset loses value, Ponzi investors lose everything and speculative investors get squeezed. That's the Minsky moment." - Marketwatch