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A fairly well-designed photo sharing app that let users organize their iPhone photos into albums, that could be shared over Twitter and Facebook

Kindof like facebook?

Wow with a one-of-a-kind idea like that, can't imagine they would have any trouble at all.

Hint to startups: don't try to solve problems that are already solved.

I had the same reaction. I guess that may be a reason why they are forced to shut down.