Let me try to explain, when you have a negative win rate on all champions you play in ranked your MMR is lower than your actual rank, meaning you gain less LP when you win and you lose more LP when you lose.
https://na.op.gg/summoner/userName=ozzzz666
Click: Solo MMR
What this is doing is it's trying to put your skill where you belong so your win rate can be positive when you win more games at the rank of your MMR. Just like how my MMR is higher than my actual rank, I gain more LP when I win, and I lose less LP when I lose.
Edit: I was also placed in Silver 1 last season and my MMR was at Bronze 1 and I was demoted all the way down to Silver 5 until my MMR matched up with my current rank.