Her core accusation is that Sam would always read her bedtime stories (he was almost a decade older) while laying in bed with her, and that sometimes while they were in bed he would cuddle her inappropriately. And that at some point she started asking him not to get in the bed and he ignored her “no” and kept up the nightly ritual.

This seems well within the realm of possibility. She probably does have mental health issues (maybe paranoid schizophrenia), but that could be an effect of the childhood sexual trauma. I had a 40-something-year-old aunt who committed suicide due to being raped as a child. :( Early trauma like that can fuck you up in ways that make you permanently unstable.

Getting abused will mess you up in all sorts of ways.

And in any case, someone as rich as Sam Altman letting a close relative live in poverty like that is by itself a pretty damning inditement of his character.