I completely agree that we're going to see a ton of malinvestments implode in the near term. And I'm not surprised that Reddit would be pressured by VC backers to increase profitability without much thought to how that would affect the sustainability of the platform. What I'm surprised by is that they're not profitable at all, at least according to the article.

You make a solid point about the 3rd party apps though. I guess those must be a major drain. Didn't think of that. Which is a perfect segue into...

...why am I asking this question? I think social media has the potential to bring tremendous value to the world, but has in practice mostly disappointed. (I actually never saw any of the toxic behavior and spamming that people mention with regards to Reddit, but I didn't participate actively and I only turned to very niche subs for specific info). Stacker News has been a very refreshing experience. I've learned a lot from interacting with people here, and I'm only a few weeks in.. I just want to believe that it's sustainable, that someone can build a platform like this, that provides value to people and allows the owners to turn a profit, but without having to make the kind of decisions that ultimately undermine the well-being of both.