The point is, when the rocket explodes on the launch pad you don't have the head of NASA saying "Well technically all the pieces of the rocket are still there, so technically we didn't lose it."
This is in the context of essentially a bug bounty for data loss issues that they were running… sounds like a NASA administrator saying something like "show us how our rocket will fail"
On the contrary, it sounds like a cover-up. Looking into the Github Issues, every-time someone does demonstrate data loss, the admins ignore it, argue it isn't data loss, or in one case, claim that the person who showed data loss is a disgruntled ex-employee (???)
Given that the former CEO is here right now accusing people of shilling while he scrubs unpleasant details from his past posts, I'd say this just appears to be a dead, toxic startup.
