Silicon Valley Bank's (SIVB) stunning collapse has brought a new element to the conversation about what role management, regulators, and investors may have played in the bank's ultimate failure — the role of social media.

A modern wrinkle in what was in many ways a classic bank failure spurred by a run on the bank, and a management team Federal Reserve Chair Jerome Powell said last week "failed badly" in the years leading up to the firm's demise.

"SVB's failure is a textbook case of mismanagement," Michael Barr, the Federal Reserve's vice chair for supervision, said in testimony delivered Tuesday. "The bank had a concentrated business model, serving the technology and venture capital sector."

Still, modern communication dynamics, in Barr's view, sit at the heart of what brought down Silicon Valley Bank with such great speed.

On March 9, depositors scrambled to pull out more than the $40 billion from SVB as panic spread throughout Twitter, along with other social media platforms like Slack and WhatsApp, after the bank revealed a $1.8 billion loss within its bond portfolio and plans to raise more than $2 billion in new capital.

"In response, social media saw a surge in talk about a run, and uninsured depositors acted quickly to flee," Barr said.

"On Thursday evening and Friday morning, the bank communicated that they expected even greater outflows that day," Barr added. "The bank did not have enough cash or collateral to meet those extraordinary and rapid outflows, and on Friday, March 10, SVB failed.

"Panic prevailed among SVB's remaining depositors, who saw their savings at risk and their businesses in danger of missing payroll because of the bank's failure."

Martin Gruenberg, FDIC chair, echoed Barr's view in his respective Senate Banking testimony on Tuesday, saying: "One clear takeaway from recent events is that heavy reliance on uninsured deposits creates liquidity risks that are extremely difficult to manage, particularly in today's environment where money can flow out of institutions with incredible speed in response to news amplified through social media channels."