Its all part of the game, that is true. Anybody who woke up early on Monday, now being called "Black Monday", and saw overseas markets knew what was coming. By 08:30/45 IST or so Shanghai was down by like 7%, Nikkei 225 was down by 3.5% or so Hang Seng by 3% and Singapore by 3.5 or so, and SGX Nifty was down too by more than 1.5% or i am not sure maybe 2 %(not sure). Plus on Friday Wall Street had like the worst session in 4 years. DOW, NYSE all down. Over the weekend China's central bank did not cut its interest rates, which its traders saw as a big "NO", as their markets needed liquidity big time, which also got factored in China. So when pur market opened, it was mayhem. All who saw this went for profit booking, who did not see this were thrown out and whoever survived this dumped everything, hence Black Monday.
But its was panic out and out. I think people just went overboard this time around, this was just riding the rally or fear of another 2008 recession. But China's situation was leading to something like this. With devaluation of Yuan and poor macro-economic data coming from China coupled with its GDP outlook looking like its going to miss its target in like 25 years or so and declining exports, things were leading up to this point.