Both developments were totally unexpected, and neither were what large macro hedge funds were expecting. As a result, they were caught long stocks and short euro.
Managers thought stocks were going to go up in Europe and assumed the euro would go down. They were so wrong that they panicked, and sold stocks and bought euro in order to unwind their trades.
As if the market weren't already crazy enough, macro traders only reacted to the negative selling of stocks but did not react to the positivity of the decline in the dollar.
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A 3 percent gain in the euro is a hugely positive thing for U.S.-based international companies. But Cramer thinks too many investors were freaked out that Draghi did not deliver, so they decided that the dollar did not matter as much to these companies after all.
"That is pure lunacy. A weaker dollar is hugely important, and that is either a flat-out misjudgment by the market, or a judgment that there is no way the euro will stay this strong so the trend will reverse itself. Either way, it is very unsettling," Cramer said.
The crazy events kept coming, though, when there was a massive spike in interest rates. Investors are typically comfortable owning stocks when interest rates go higher over time — not suddenly. It was one of the biggest single-day moves in interest rates that Cramer has seen in ages.
And with the OPEC meeting on Friday, Cramer thinks the mayhem is not over, yet. There are so many short sellers in the oil market that many of the shorts locked in gains just in case Saudi Arabia decides to cut production. As a result, the price of crude went up, yet the actual oil stocks went down.
That was totally crazy to Cramer, and told him that investors are waiting to see what OPEC says rather than anticipating the action.
"It is always very difficult to link real-life tragedy with something pedestrian as money. But we do know that mayhem produces fear, and fear produces selling. They do go hand-in-hand. Just a fact," Cramer said. (Tweet This)
With all of the events on Thursday, Cramer recommended for investors to sit tight. He can't blame anyone for taking action but reminded investors that the selling will always eventually stop.