I don't want to speculate in any way, shape or form as I don't know the details. In the original Auzrun info, it said that the money would be kept in trust until the even in case of cancellation either by the participant or organisors. Theoritically, the money should always be there.
The biggest thing that keeps coming back to me is why businesses are upfront and honest about things, is it that difficult to keep people in the loop? Or is that poor business?