DO has raised enough cash to be able to do this to keep clients (good for LTV).

This is because DO is desperate to retain customers. I don't know if it's still the case, but a year or so ago the CEO was personally handling customer service, responding via email and adding credits to people's accounts. If the CEO has that much time on his hands, to personally handle every customer dissatisfaction, then the customer base must be quite small.

I think for me the largest red flag was DO not even having bandwidth monitoring in place. The only reason there were no bandwidth limitations was because they were not even physically tracking bandwidth usage. How do you launch a hosting platform without something as basic as being able to monitor bandwidth?