Yes, they will need to be completely transparent about their outlook at the time of the IPO, and disclosing the current and historical active user counts is a pivotal figure in that data.

I wouldn't be surprised if this move actually damages Reddit enough that they can't IPO because the user engagement numbers will take such a sharp negative turn.

Highly likely that one of the risk factors they disclose in their prospectus is that the revenues are highly correllated with active user numbers and traffic and if those things change, revenues will be impacted. Even without this latest drama it would be amazing if they didn't have something like that in there.

Every IPO files paperwork that basically says "The SEC requires us to say we're completely full of shit, everything we do is a lie, and you will lose all your money."

And then it's perfectly legal.

And they continue to do that, go read any prospectus, it's all about how everything will die and the company is dead.