Availability Group Quorum - majority of nodes down but Cluster still up?

Hi,

I'm just starting to work with AlwaysOn Availability and WSFC.

I have in my environment (in Azure) a DC, WSFC and to SQL instances, so I have 3 nodes in my Failover Cluster:

WSFC 

SQL1

SQL2

If I simulate failure by shutting down one of the SQL boxes my Availability group seamlessly fails over to the other SQL instance - which is great.

However, I'm starting to look into the workings of the Quorum, my envt has the default settings and when I shutdown both of my SQL servers I expected the Cluster itself to go offline as 2 out of the 3 votes will be negative, but the Cluster is still up - could someone explain why this is? Screenshot below when SQL1 and SQL2 are  shutdown:

Going through the Wizard (but not changing anything) it shows following config:

Thank you in advance