If we take this story at face value, this was a recap. It’s basically the same as shutting the company down and starting over. It’s not ideal, but this only happens if everyone agrees the company is basically worth $0. Remember, the other investors also lost all their money, not just him.

If you’re going to say it’s your startup and put founder in your title, you also have to be responsible for it succeeding. You don’t get to have it both ways.

EDIT: parent comment was edited to say it’s him being vulnerable. I don’t think so; it’s him farming engagement for marketing.