Really? I know nothing about this other than what I've read here, but my first guess was the breakdown in trust means the allegations of fake audits.
I was half-joking, but if YC has a legal issue resulting from the alleged fraud (unclear currently), kicking out the company for the lesser infraction would make more sense.
It is very clearly the fake audits.
I was half-joking, but if YC has a legal issue resulting from the alleged fraud (unclear currently), kicking out the company for the lesser infraction would make more sense.