[SkyMarshal]

>So our advice is, be naughty enough to get your goal accomplished, but retreat if necessary and make sure you apologize!

I would say the advice is more along of the lines of, "First, do no harm (unless it's to the industry you're trying to disrupt)."

Sounds like their major transgression was outing other interviewees who wished to remain discreet so as not to lose current jobs or career prospects. That's a big OUCH.

The secondary one was originally sounding too much like a YC-sponsored event, which could have enticed customers under false pretenses.

A good lesson to keep in mind not just in applying to YC but in any endeavor.