I agree that this business could have been proven with less money, however, I don't think they wasted all $5.25M on Cherry. From the article it sounds like they

I agree that this business could have been proven with less money, however, I don't think they wasted all $5.25M on Cherry. From the article it sounds like they are closing down Cherry and pursuing another idea. It is bubbly that a startup with limited traction raised a large round before having product/market fit and a business ready to scale, but their lucky they have supportive investors who probably believe strongly in the team, thus letting them try something new instead.