Why Crowdstrike is still Fxxxxd up?

Shares of $CrowdStrike Holdings, Inc.(CRWD)$, the originator of the global downtime, have finally rebounded slightly after two consecutive days of big drops, but with the incident affecting a large number of $Microsoft(MSFT)$ Windows devices (about 8.5 million), Crowdstrike could face serious problems, including and not limited to:

1. Kernel Access Risks: Crowdstrike packages its security program as a "driver", gaining kernel-level access.This high level of system access could be revoked or subject to stricter regulation.

2. Vulnerable Update Mechanism: Crowdstrike bypassed Microsoft's driver authentication process in order to perform quick updates by modifying text files and pushing them directly to client machines.This practice has led to recent major incidents.

3. Potential loss of competitiveness: If Crowdstrike loses access to the kernel or is required to authenticate with every update, its real-time protection will be greatly diminished and it will be reduced to an ordinary virus scanning program.

4. Risk of customer loss: In the short term, some customers may default and switch to competitors as a result of this incident.

5. Exposure to lawsuits: The company may be exposed to lawsuits for loss of business, and negligence is usually not covered by insurance.

6. Financial stress: Crowdstrike currently has limited profitability and only $3.7 billion in cash reserves.If revenues decline and litigation increases, it could face severe financial pressure.

7. Questionable competence of technical team: The incident revealed serious deficiencies in basic areas such as Crowdstrike's slow rollout, user acceptance testing, and error handling, reflecting the potential for deep-rooted problems in the technical team.

Overall, the incident could deal a severe blow to Crowdstrike's technological edge, market position and financial status, and expose it to an existential crisis.However, there is also a view that Crowdstrike may be able to resume normal operations in a few months due to the special characteristics of the network security industry.