I think of people like David Sacks preaching libertarianism and not taking money from the government until the moment things seemed uncertain at which point he’s practically begging for government bail out.

I think given his influence and hypocrisy this is despicable. But pathetic is another word that comes to mind.

I think people are unhappy about the hypocrisy in the form of a special carve out. This class of people, despite their wealth and influence, aren't exactly lobbying for expansion of similar protections for the average person. In fact, who's to say if a lot of these startups weren't just laying off people as part of the crowd recently? So people are mad of the unfairness.

How is it a special carve out? The FDIC protects literally all the other deposits already.

They quite literally made exceptions for SVB and Signature only.

And all the average persons the OP mentioned were already protected. We’ll see if this stops the contagion. It’s in our collective interest that it does.

Yes, it's a moral failure. Fiduciary duty is often poorly-remunerated and boring. If you can't tolerate that, don't become a fiduciary.