This mistake does not make YC look bad, we don't feel good for sure, but everybody makes mistakes, those videos you put on Youtube help startups everyday, I think you guys are all exhausted, an apology and more info is enough, $10K is nothing, the network we should've built is what we've missed.
Thanks Sam, I think you can surprise the "rejects" by doing something to inspire them to continue to pursue their projects and dreams, maybe a competition and winner gets something. Maybe invite them to an event in MV and have a party.
Initial reactions maybe harsh from everyone since lots of people are emotionally attached to their startups and YC at the same time.
But, in some time, I trust most of the champions here will understand this error.
Guys keep plugging! I see lots of community already being formed here to share their lecture journey. I believe it's nice to have that kind of place to interact with everyone.
I think the least we can do in exchange for the free content from auditing the course is forgive you.
If nothing else, this situation is just more motivation to succeed in spite of obstacles and setbacks.