It was ok if they said they did not want to pay him as he is no longer and employee and later correct themselves saying that it was a mistake on their part as he was an employee after 6 months. What is not ok is that they used an emotional line of defense. Saying he doesn't deserve it 'cos of a screw up, tells me that both Somrat and Tim are kinda characters that would bail out when push comes to shove. Its the question of integrity and you just have to stand by the right in a startup. To me, this is the exact warning sign I need before thinking of a startup.
I hope employees of Miso read into this and take home something. Many might not care, but its their opinion.