[AlexandrB]

I agree that "Ponzi" is probably technically incorrect. This piece by dirty bubble media has a more nuanced definition and calls it a "flywheel scheme": https://dirtybubblemedia.substack.com/p/is-alameda-research-...

IMHO, the moral failing is simply being too credulous of SBF's claims and not digging deeper. A lot of the stuff getting posted in the aftermath was content already available before FTX collapsed. In particular, the conversation with Matt Levine where SBF basically describes a Ponzi scheme comes to mind.

[bombcar]

Ponzi has a very technical meaning and people instead use it to mean "Every Scam" and it gives an effective defense for scammers.

Many scams end up operating as a Ponzi scheme in their final days as it keeps them afloat a bit longer, but the actual scammy loss is often not a Ponzi.