I wondered the same thing about how in the world they went bankrupt. Unfortunately, what most people and many companies do, is as more $$ come in, they spend more and more, often in stupid ways.
To your last question, the company could easily have "gone bankrupt" while the people that ran it got rich. That's the protection of incorporating. If the business goes bad, you aren't personally liable. So they may have paid themselves into bankruptcy, whether intentional or not, only they would know.
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