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Honest question: how does this not trigger a "stampede for the exit" including lawsuits for everyone else who wants to get their money back?

Probably. I'd imagine that's why Theranos will insist part of the deal is that the exact terms will never be disclosed.

Their other investors will be entitled to the balance sheets as is. They can't just say "and an undisclosed sum to [prior investor]" and redact their balance and liabilities.

To the public, yes.

Hah good point. So Theranos is literally fighting for their lives, because if one investor gets 25% of their money back, all the other investors will want the same.

Once the suit is filed it also forces the CEO to behave differently, legally in terms of financial responsibility. Away from company&employees to investors. So I've read. I'm not a lawyer.

That was about 18 months ago. I wouldn't be surprised if they were burning cash at a phenomenal rate (over $10m a month). They won't be able to do a big cash settlement without raising more money.