It's a clusterfuck really, but yeah the lead writer, designer and artist were all fired and lost the rights to the IP. Litigation is still ongoing I think, and hopefully Kurvitz, Hindpere and Rostov can regain the right to at least produce more work in the IP in the future. Heartbreaking for Kurvitz especially since he's built the IP with and for his friends from the age of 15.
They'll kill it by having the largest userbase, and therefore the most and best content, and then finally defederating and forcing everyone to join Threads. At least that's what they'll most likely attempt to do. It remains to be seen whether they'll be successful. The EEE approach has been used before and is well documented. Read more on Wikipedia: https://en.m.wikipedia.org/wiki/Embrace,_extend,_and_extinguish