Here's my take - it looked like their average concurrent players was around ~30 before this happened, which indicates it was nearly a dead game. It's free-to-play, and I can't say how much they made per player, but a decent amount would be $0.05 per DAU. Converting concurrents to DAU is difficult, but let's say they had 500-1000 DAU. That would be on the order of $25-50/day.

My guess is they could fix the problems, but it would cost an engineer a month? or a couple months? Considering the game was on the decline, it's hard to justify spending any effort to fix the issues.

Now the weird part. It was a F2P game - I don't know how much stuff people were buying in the game, but there's an implied contract that when you purchase a digital good, the digital good will continue to work for some reasonable amount of time. They are breaking that agreement by not restoring their servers and I am not sure what that means legally - there's potential for class action lawsuits, maybe?