A friend went back to CG after the sale and told me that everything there is now off limits. In a video from the YT channel I saw a sign that said 'private property - trespassers will be prosecuted' [0]. It's sad and lame, and I'm getting douchy vibes when I watch the guys videos. But hey, good luck to him.
EDIT: I just watched the hilarious and insightful Maggie Mae Fish video[1] linked by Spellmann. I retract what I said before. The guy is a full on douche and fuck him.
I also think the video you linked is nonsense and totally unfair. If you look at the history of CG and how big the town used to be, it would have been losing several buildings a year on average consistently for the last century! Losing only one in the last 3 years is incredible luck, and this frames it as fraud with zero evidence.
He could probably get away with this at the hostel (which is in a popular city), but hiring people for minimum wage in the middle of nowhere is a different story.
Well it turns out Clearlake was heavily contaminated with mercury when there was an active mine right on the lake…
Buyer beware!
But yeah lots of gotchas when buying land. Floods, fires etc.