Penguin went after link schemes: paid links, link networks, and unnaturally repetitive exact-match anchor text. Sites that had inflated rankings with low-quality backlinks saw them collapse. It made link quality and a natural profile non-negotiable.
Since 2016 Penguin evaluates links in real time and tends to devalue spammy links rather than penalise the whole site, so recovery is faster once bad links are addressed. Where a real link scheme exists, a manual action can still apply.
The takeaway for modern link building: earn relevant, editorial links, keep anchor text varied and natural, and audit your profile for toxic links. This is exactly the discipline behind sustainable link building.