I think it's important to point out that even extremely intelligent and talented individuals can lack critical scepticism when deciding to follow a leader or stay with a particular project. I've seen so much human energy and engineering talent go into a business that everyone should have known, didn't have organization, strategy, or actual leadership to build real product and be a viable business.

I agree very much!

A lot of smart people get woo-ed by bad pitches or wrapped up in cults too. It's all about how the message is coded for the target audience. An astute MLM seller uses very different language to sell to a small farmer vs a young silicon valley graduate[1]. There's also the aspect of how vulnerable the audience is at that point in their lives, cults are especially good (bad?) at finding people in tumultuous periods in their lives, looking for any sort of hope and/or support system to pull them through it. Then the cult provides the community and short-term structure they crave at the time, to their long-term detriment.

Personally, how relatively smart and even generally skeptical people fall for cults and conspiracy theories is one of the most fascinating sociological phenomena out there.

[1] leaning somewhat on general stereotypes for the sake of argument, not insinuating all these people are the same, or implying anything about the relative intelligence of a farmer vs a silicon valley graduate.