There is some truth in it. The bank had a relatively small shortfall (I think about 2%) compared to its total assets, but any shortfall at all is dangerous for a bank since it is liable for 100% of assets.

The bank was trying to get some financing to cover the gap, which it might have been able to do, but its customers heard the rumors and tried to pull out around 25% of the assets. Had the bank gotten the financing before the freakout, there might have been no problem.

As it is, the Fed and FDIC seem to be able to put the situation together by finding another bank that is willing to eat the shortfall to buy $200B of AUM. It's a easy resolution with the minus that now instead of two big banks there will be one even bigger bank and we've got too many banks that are too big.