They say banks in Cyprus have large deposits from foreigners (many of them Russian, but this is not important for the purpose of this question). The government had planned to take a 10% cut of all deposits to make up for bank losses (it was told to do so by the Germans, but that's not part of my question either). That didn't go down very well so now the threat is that cuts of perhaps 2/3 or 3/4 of large deposits will be necessary to make up the shortfall.
The math doesn't work. If most of the deposits are from wealthy overseas investors, then 10% of all deposits is not much more than 10% of large deposits. Conversely, if a large cut of large deposits is necessary to avoid harming small depositors, then a large fraction of bank deposits are by small investors - and Cyprus was a haven for rich overseas investors.
Either I misunderstand something very badly, or they are lying to us and not being caught (who "they" are may be relevant for my question, but I don't know who it is).