This is an interesting theory. I'm not sure I understand it fully. But since the company pared back its offer (and likely will sell again via 2nd offering) it certainly is good to leave the impression that some 'value' will be left on the table for public shareholders. Whether or not its all a mind and pr game, versus something more actually tangible, is perhaps beside the point. And I suppose that is what the title is meant to convey. Here is one critical bit of context:

But no Twitter insiders sold stock as part of the offering, so their shares, valued at as little as $17 just a week ago, are now worth more than $40 a share. With the shares still at least 60 percent above the initial offering price, Twitter’s insiders must feel rather pleased with how the offering was executed.