How can they give refunds if they ran out of money. Is it partial refunds? What %?
And this is why you shouldn't pre-order anything that sounds too good to be true (much less back it on Kickstarter) unless they have, at the very least, a fully functional prototype.
Funny thing is the epitome of this is No Man's Sky. Yet they came back strong despite all the hate. There are plenty of examples where people have delivered on fund raisers. So it's a hard call I think. If we stop this sort of thing, kick starting, then it makes things for indie business people even harder to do.
Especially be very skeptical of anything coming off too much polished shiny web sites with professional rendered 3D models and top notch graphics. A revolutionary quadcopter with high res camera doesn't need any of these to sell itself, but a well crafted scam usually does.
$34M in pre-orders still couldn't get it done. Rough!