I don't know if the original link was to the Internet Archive.
As for blind-eye, the other option would be to disallow paywalled stories entirely.
From the official Hacker News FAQ,
> It's ok to post stories from sites with paywalls that have workarounds.
> In comments, it's ok to ask how to read an article and to help other users do so. But please don't post complaints about paywalls.
HN either shouldn't allow any sort of paywall bypass (other than gifted sharable links) or should ban submissions from sites that have a paywall, IMO.
I don't think YC could say with a straight face that they'd be OK w/ one of their portfolio company's content being taken from behind a paywall and shared elsewhere to a very large audience. Actually I do think they could (and would) say that, but I wouldn't believe them.
I've used a number of tricks to circumvent paywalls over the years, and they all get shut down after a year or two.