Yes, the fall of the original Digg happened long ago.

https://techcrunch.com/2012/07/12/betaworks-acquires-digg/

At the time Digg was acquired in name only. The team had a short period to replace the then current (and very expensive) infrastructure and hijack all traffic. They did a pretty awesome tech job of moving to AWS and stopping the bleeding from the then in place bare metal setup. I remember a tech talk where they spoke of the money they saved from moving to AWS, it was substantial and allowed them the resources to try to save the product. Since then it was a re-birthed startup with a new team that had quite a long runway IMHO.