$1 Club, page-26528

$50m in aggregate only sounds big from a retail investor's perspective.

It is far smaller in an institutional context, especially when you consider that $50m is the aggregate of multiple institutions, not just one taking on the full exposure themselves.

IOU is likely a very small percentage of any institutional portfolio, so if you think that institutions are going to double down on a dud you are indeed delusional. When the CR was happening, there was momentum from a change of board, a strategic refresh, a potential COVID reopening, and in theory the competitive advantage of an existing pipeline of potential BNPL clients. I might be wrong, but PayPal had not announced BNPL plans at the time, and Square had not acquired Afterpay.

The environment when the CR happened was far more positive for IOU. The same cannot be said for the current environment, and it is much more likely that institutions are taking losses on a minor position in their overall portfolio and ARE NOT DOUBLING DOWN ON A DUD.