Greed and regret for founders n VCs
Regrets for the employees who got laid off.
Business failure or difficult periods are understandable. But financial rigging is a big no-no
These wont make a dent to them 
AFAIK, average level people don’t join start ups, so the sacked employees will very soon get other employment 
Need to see, if this is a breach of law, and if yes, then any action will be taken.