Naked stripped bare - startup runs out of cash, enters liquidation

Are there any stories of Silicon Valley start-ups getting themselves into a similar state to this with a product at a similar stage?

didn't look like they were very scrappy from those pictures

I think the story is a little strange with the divorce forcing a freeze on the invested money. It sound more like the investor didn't want to pay, as there are 10 other similar products/sites and their application cost much but didn't deliver much.

Sure wish I have enough money to spring for all those Cinema Displays and fancy web agencies to contract work out to.