It’s operating on money made up out of thin air.
Derivative exosure at the big banks add up to more money than there has ever been or ever will be.
They have sliced and diced and sold and resold the same bad debt hundreds of times over.
Sooner or later someone’s going to be paying.
I’m afraid your understanding of derivatives is somewhat lacking. You need to understand the difference between notional value and value at risk, and how the hedging and the financial strength of the counterparties limit value at risk. The derivatives they have now are pretty safe, they’re much more likely to lose their shirt on something else.