1) WTF?
2) How close is pg to this whole mess? I'm guessing this is no longer in his sphere of influence, but it would seem that given that Wakemate is a YC company he should probably clarify YC's position on this debacle. I realise this is more a question to pg than to you, but I guess you might have an opinion.
3) Do you think the problem that ultimately killed the company was a mismatch between the founders, or did that evolve as a result of the multitude of problems that the company encountered? I'm getting a hunch that all these mistakes by the company could have been the result of lacking a clear direction/leadership.