We've seen this before.

In 2001, there were something like 50+ OC-768 hardware startups.

At the time, something like 5 OC-768 links could carry all the traffic in the world. Even exponential doubling every 12 months wasn't going to get enough customers to warrant all the funding that had poured into those startups.

When your business model bumps into "All the <X> in the world," you're in trouble.

Especially when your investors are still expecting exponential growth rates.