Cyprus getting much much "noisier" now on the news. Eurozone delegates are screwed and they know it. Again, if they cave in any way now to Cyprus, that's it for credibility and "bluffs" with Spain and Italy. If Merkel caves, that's it for her re-election in September and the political landscape of uncertainty will hang over Europe until then.
If they don't cave, they are going to have a Lehman moment only this time it's with soverign debt. If they actually think they can pull it off, they'll do it just to show Spain and Italy who's boss.
Cyprus is screwed either way and they know it too but it's too late to go back and say sorry to the EU. The bank runs are a fait de compli.
I'm going to Vegas and putting odds on the Eurozone going "all in" and rolling the dice on default. If they don't they will lose the only thing they have - power.