At least half the depositors and bank shareholders are Cypriot tax payers.
The vast majority of those do not have 100k Euro in the banks.
Look the banks are insolvent. It is what it is. This is a better "bailout" than just going to the taxpayers. In this case at least you penalize bank shareholders and uninsured depositors - most of whom knew perfectly well that these banks were in deep trouble. And I'm not going to shed too many tears for the Russians who've been hiding money in corrupt, broken Cypriot banks.
Would you prefer German taxpayers just hand Cyprus 10 billion dollars to get their house in order? Maybe you wish Cyprus would just take their chances and walk away from the EU? I'd love to see it myself, but it ain't going to happen. So here we are.