Wow, asking institutional investors to hand over some cash to cover the cost of bad security -- that's ballsy.
> The 56,000 ETH compromised from the Axie DAO treasury will remain undercollateralized
The investors are handing over cash to invest in the company. The currency will run without backing from now on. That means any big users trying to withdraw at the same time won't be able to. And if that happens, the investors money won't be used to fill the gap.