[maxerickson]

I don't understand your reasoning about this. It's obviously not a big deal that the technology might be a sham. Who cares about the investors losing money.

It's a huge problem that they provided bogus results to patients.

Here's a simple mechanism they could have used to develop their testing technology: While doing the pilot research on the new technology, build up an excellent lab practice using existing tech. Once the pilot tech is ready for wider testing, start using those delicious VC bucks to offer patients a trade; in exchange for a lower price on the excellent traditional testing, they allow you to use their sample to test the new tech against the existing tech.

So the moonshot doesn't requires exposing patients to any additional risk at all.