Alas, market mechanisms aren't such great protectors here. They work best with large populations of similar events, where "average" behaviors can signal expect

Alas, market mechanisms aren't such great protectors here. They work best with large populations of similar events, where "average" behaviors can signal expectations and volatilities can be estimated on a fairly stable basis. Endgames offer the unethical opportunities to reap excess rewards without market penalties. Hopefully, there will be enough information to know just how screwed these people are (or aren't, I've seen gossip that several were late-comers) and the VC / executive players involved. It's possible that these decisions make some sense, but it sure looks bad at first glance.