I think you will find a lot of investors are keeping their money in Hedge Funds because they signed agreements that give the Hedge Fund Manager discretion over when and sometimes WHETHER they can get it out.
Hedge funds are a mulligan industry. These guys who are wiping out right now we be given more later. And they will lose it then, too. Ironically, the money being given them is called "smart money".
Lots of funds will close down simply because it's in the managers best personal interest to do so. Most funds have a "high water mark" clause, so it's going to be a long time before some of them will be compensated highly again. So better to close out (for the manager, not the investors), and start over fresh without the high water mark.