This is beyond the point, these practices cause economic bubbles and when such bubbles grow too much eventually they pop and a lot of other people pay the price.
I am not sure what is confusing about this. If a company is too expensive, the qualified investors who are spending their investment dollars are free to not buy equity in those too expensive companies.
They manage billions of dollars! I am sure they can figure out how much a company is actually valued! They aren't going to be "tricked" by some valuation scheme that randos are pointing out in HN comments.