I wasn't there, but dots can be drawn. Niels Jensen, Borland founder, and his team created turbo pascal, then added Philippe Kahn to the mix to head the US company. Niels and his team also wrote a Modula 2 and C compiler, but Philippe instead chose to buy Wizard C, and market that as Turbo C instead.
This lead to a split inside Borland, Niels and the rest leaving to form JPI which released their work as Topspeed C, and Topspeed Modula 2.
My speculation is that Modula 2 was killed at Borland as a direct result of the split.