Here Rabbi Pinchas Winston does a little explaining on this period in history..
http://www.torah.org/learning/perceptions/5764/korach.html.
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Today we read the writings of the Ramchal, Rabbi Moshe Chaim Luzzatto, with enthusiasm and pleasure, however, while he lived (1770-1746), they burned his books and forced him into exile. He had been a victim of the paranoia that had set into European Jewry. As righteous and brilliant as he was, as a Kabbalist, he spoke openly about Moshiach and the redemption, a great mitzvah:
In the Sefer Mitzvos Katan, he wrote in his explanation of the Positive Mitzvah of, "I am G-d, your G-d, Who took you out of Egypt," that it means one must know that He Who created Heaven and Earth alone controls [the world] above and below. However, to this he added, "This [mitzvah] is the basis for what the rabbis teach: At the time of a person's judgment after death, they ask him, 'Did you anticipate redemption?' (Shabbos 31a). Where is this mitzvah written? Actually, it comes from this [same mitzvah], for just as, 'I am G-d, your G-d, Who took you out of Egypt,' means that we are expected to believe that G-d redeemed us from Egypt, it also means, 'Just as I want you to believe that I took you out [from Egypt], I also want you to believe that I, G-d your G-d, will gather you in and redeem you in mercy a second time'." According to what he (Sefer Mitzvos HaKatan) has said, belief in the future redemption is part of our faith in, "I am G-d, your G-d," and thus included in the first of the Ten Commandments. However, if we examine ourselves, it seems as if we are very far from having faith in the future redemption. Occasionally we speak about G-d having made Heaven and Earth, and that He directs creation. However, when it comes to the arrival of Moshiach and the resurrection of the dead, we are quiet, as if we are embarrassed to speak about them, as if we have given up [on such realities] altogether. However, the words of the Sefer Mitzvos Katan should arouse trembling in our hearts since they are part of the mitzvah of "I am G-d, your G-d." And, anyone who is not involved with these matters is far from having any true faith . . . In truth, most of the Shemonah Esrei deals with the future redemption . . . And, just as we are lacking faith in this matter, we are also distant from the essence of prayer. We lack connection to [the blessings regarding redemption], and all of our prayers are only lip service! (Ohr Yechezkel, Emunas HaGeulah, 1960; p. 287)
As a result of the Shabbtai Tzvi disaster, the Jews of Eastern Europe charted a course of Torah learning that was as mainstream as one could get, because it was safe. Deviatation from that line of learning, one risked being branded dangerous at the least, and a heretic at worst. And, when the Ba'al Shem Tov introduced such a deviation which quickly resulted in all kinds of differences in approach to performing mitzvos and serving G-d, one that was geared more to the masses, it triggered an all-out war that included the greatest Torah scholars of the time, such as the Vilna Gaon.
Reconciliation was not forthcoming, and polarization resulted instead. While the Misnagdim focused on the essence of Torah learning, the so- called bread-and-butter of Torah tradition -(Talmud and Poskim), Chassidism focused heavily on the spirit of Judaism, sometimes at the cost of the former. And, as Rabbi Berel Wein points out, Chassidus survived the test of time, at its start it was quite volatile and anything but mainstream, with an emphasis on Kabbalistic teachings that seemed to put salt into the wounds inflicted by Shabbtai Tzvi and his followers.
The trouble is that there have always been breakaways in Jewish history, and most of them have been destructive to Torah tradition. We are a small people who have been entrusted with a sacred mission that carries with it tremendous responsibility. The world depends upon our living up to that responsibility, and it is the nature of men, when living under such conditions, to reduce everyone to either friend or foe. Change never comes easy to the Torah world, especially when it first appears as a break with tradition, as so many movements have proved to be, as opposed to just another aspect of it that had yet to be revealed.
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