I guess with a high profile link from HN to Medium indexed by Google, and future owner will see the red flags from a mile away... KitSplit is as good as dead right now.
I hate to say it but unless you're bound by an arbitration agreement in the terms of service you should just file in small claims. Even still...file in small claims and make them fight to have the case sent to arbitration. Lawyers are expensive and you won't need one in small claims.
Sometimes the process is the punishment.
So it died at that point because they reimbursed the owner.
This is their only way out at this point. But they took the high ground this time, and it's likely that the bad press will grow until they will compensate the unlucky chap to make this disappear as well.
Also, the co-founder of KitSplit has an account here as well.