If that is what happened, they deserve some scorn for playing with a person's life like that. That's just not on. If, however, they were clear about their reservations and just wanted to meet the guy again to discuss, it was really stupid of him to transport himself from his home to a hotel.
Such a cavalier attitude to risk actually might be a very good reason that this guy should not be running anything, and YC made a sound choice.
Either way, don't know any of the actors in the story and wish them all the best. Thanks for sharing this rather strange story.