There seems to be the impression that "waiving due diligence" in an acquisition is some license for the seller to defraud the potential buyer without recourse.

If Mudge's allegations are true that Twitter has been defrauding the public in their reporting, failing to abide by the terms of a federal consent decree, and generally turning a blind eye to real problems to prop up their image, then "waived due diligence" or not, Musk has an out from the acquisition, and cause for a significant tort claim.