What basis do you have for claiming it's a joke?
Otherwise the submission is perfectly fine. :p
"The only restrictions on acceptable teams are founders must be willing to work on their ideas full-time, and teams can’t have previously taken money from investors."
What if we haven’t yet received investment, but we have a ton of traction, users, revenue, etc.?
We want YC Fellowship to really help teams that are just starting off, or have been struggling to get traction. If you’re doing really well, we’ll likely ask you to apply for the next batch of Y Combinator.
In this case, the normal selection process has been changed by throwing the decision to Hacker News. And the people have spoken!