From your link: "The 10bn-euro ($13bn; £8.6bn) bailout agreed with the EU and IMF had demanded that all bank customers pay a one-off levy and led to heavy cash withdrawals."
The EU were happy to sign off on a proposal which would see deposits under 100,000 EUR being hit. Maybe it was their idea, maybe it wasn't, but they were okay with it. Ultimately it was the Cypriot parliament who rejected the proposal.
"Cyprus President Nicos Anastasiades says he is battling against eurozone demands that all bank customers pay a one-off levy in return for a bailout.
Mr Anastasiades said he shared people's unhappiness with the terms, whereby all bank customers would pay a levy of 6.75% or 10% on their bank deposits.
The EU and IMF have demanded the levy in return for a 10bn-euro ($13bn; £8.6bn) bank bailout."[1]