Yeah, I'm not particularly well-versed in this, but I'm inclined to agree. As others have mentioned they were probably just believing there own hype.

There is the question though of at what point did they realize what they were attempting was pushing up against some fundamental limits and just wasn't going to work? Did they think they were going to pivot?

At some point a 'web of shadows and lies' would have to be construed as a scam, wouldn't it? Even if that wasn't the initial intent.