Bootup Labs accepted 7 startups into its program this January. The proprietors of these startups agreed and finalized the paperwork and moved up to Vancouver to participate. They were told shortly after arrival that there may be some hiccups with the funding but not to worry and they'd get it all straightened out.
In the meantime, Bootup Labs paid the living expenses for at least some of the startups but the capital never materialized. In March, Bootup Labs had secured new investors, but the investment wasn't enough to keep all seven startups alive. They cut four of the seven loose just like that, with no money to help make their way back to their places of origin, no capital invested, and nothing more than a "Thanks for trying, sorry about this."
Status.ly proprietor Jamie Something wrote a post about it and the thing kind of blew up.
Again, that's the story as I understand it. All corrections are welcome.