It's not that unreasonable. During the post-covid inflation and high interest rates getting loans and attracting funding got very much more difficult. Downsizing by 75% probably would result in a failure that just took longer. They chose to keep going in attempts of securing that next step and it didn't work so they shuttered. The environment for funding changed and the less attractive startups shuttered, that's what happens. Maintaining a short runway is a vibe, a path towards a big reward or a quick failure. That risk isn't for everybody.