Oh, those poor investors! It would be absolutely unreasonable to expect them to evaluate the business fundamentals of their investments; it’s not as if that’s literally their entire job.
You can't pin it on investors, when founders deliberately schedule fundraising rounds tightly not to give investors time to think. This benefits the founder, but if they pull a fast one, investors will lose trust and be less lenient towards the next founder. Trust is a pillar of the venture capital ecosystem.
This article makes no such claim. It is about whether or not investors knew.