The same reason people buy crypto.

They expect to resell it at a profit to a bigger sucker before the whole thing collapses.

That was my first reaction too.

Early investors made a bunch of money, before bankruptcy lost everyone else’s money

Look at the economics that a16z needs with fund sizes in the billions. Funding small companies won't do it for them unless they invest in a lot, probably more than they can manage duedil or spend time on; they need investments who can deploy a lot of cash. With, obviously, some chance of success.

Hopefully for their LPs Adam learned some lessons.

I didn’t want to be the one to say it.

well if he repeats the wework arc then the you want early in and early out

Why would anyone trust Sean Parker with their money after he ran a music pirating service, got hooked on drugs, acted crazy, and burned out? Well, it worked out okay for Peter Thiel.