It sounds like the lead was demoted to attract new talent, quit as a result, and the rest of the team also resigned to force management to change their minds.

If so, I'm happy that the team held together, and I hope that endogenous tech leads get to control their own career and tech destiny after hard work leads to great products. (It's almost as inspiring as tank man, and the tank commanders who tried to avoid harming him...)

(ducking the downvote for challenging the primacy of equity...)