Yeah that's what I've gleaned too. He made some account mistake and as all the funds poured in PayPal locked his account. He can neither pay the manufacturer, nor supply refunds, except out of his own personal funds (and maybe a very limited trickle from the PayPal account?), and was terrified to tell us for fear that we'd all bail and ask for our money back making him totally bankrupt. Meanwhile PayPal's position is that he should take out a loan from PayPal to refund people their money if they ask, and it's otherwise not their problem. The whole situation sounds super ****ty, and he's taken on extra projects to help with cash flow but is now just buried in unfinished promises.
That all said, despite him being disorganized and having made some bad decisions, I still trust we'll eventually get our boards, and I'm not in a hurry, and I'm still looking forward to mine. I've got plenty of things to type on in the meantime.