The discussion is about late-stage investing, though. Obviously yes, the occasional unicorn funds a lot of slop and failed choices in series B rounds. But if that were true, then they wouldn't be laying off a paltry 17 people because of a minor market downturn, would they?

Again, the timing of this makes it abundantly clear that something YC was doing in the years before SVBs failure is instantly impossible now that it's dead.