What are the most epic startup fails you know?

Immensely popular, they got $20M funding, but nincompoop investors allowed the founders to take $2M each off the table. The young CEO bought himself a brand new Ferrari and expected it to be business as usual for the rank and file employees. THEY ALL QUIT IN ONE DAY.

The young female founder began as a leader, doing whatever it took. She did cleanings herself when no one else was available. But then came the funding and after that, every group under the sun that idolizes female founders invited her to speak and collect a plaque or other form of accolade. She flew around the country soaking up the praise - when her employees could not get through to her that: 1. Most customers only took the ultra-cheap first-time cleaning 2. They could not develop software that adequately accounted for the time for cleaners to travel from job to job - or even do a C- job of grouping jobs by location - which frustrated cleaners who could not meet time promises that Homejoy made to customers 3. They had no system for recouping partially-used cleaning supplies. Waste and theft was rampant.

They had awesome growth, a community of loyal users/fans and then they sold out to Microsoft