Company lies to sophisticated investors. They fail. Sophisticated investors who did not do proper diligence lose their money. Yes, that's how capitalism works

Company lies to sophisticated investors. They fail. Sophisticated investors who did not do proper diligence lose their money. Yes, that's how capitalism works (technically, America's mixed market). Now, if Magic Leap were a public company that lied to the public, yes I would be totally in favor of regulatory/civil, maybe criminal, investigations.