5.
FTX – From Crypto Golden Boy to Criminal Defendant
Failure Type: Fraud, Mismanagement
Year Imploded: 2022
What Happened:
Sam Bankman-Fried launched FTX and quickly became the face of the crypto boom. He was hailed as a genius, mingled with celebrities and politicians, and built a $32B empire. But behind the scenes, FTX was allegedly funneling customer funds to SBF’s hedge fund, Alameda Research, to cover bad bets and wild spending.
Fallout:
When the house of cards collapsed, $8 billion in customer assets vanished overnight. The crypto market went into chaos. SBF was arrested, extradited, and convicted on seven counts of fraud in 2023. The fall of FTX was so massive it shook trust in the entire cryptocurrency industry.
4.
WeWork – A $47 Billion Fantasy Office Bubble
Failure Type: Delusion, Overspending
Year Imploded: IPO failed 2019, bankruptcy 2023
What Happened:
Adam Neumann envisioned WeWork as more than an office space company — he saw it as a movement. With over-the-top spending, cult-like company culture, and bizarre side ventures (like WeGrow schools), WeWork burned through investor cash at an insane pace. Their IPO filings revealed massive losses, conflicts of interest, and an inflated valuation.
Fallout:
The IPO was pulled, Neumann was ousted with a golden parachute, and in 2023, WeWork filed for bankruptcy after being valued at just a fraction of its peak $47B. What was once a Wall Street darling became a cautionary tale in Silicon Valley hype.
3.
Lehman Brothers – The Collapse That Broke the Global Economy
Failure Type: Greed, Overleveraging
Year Imploded: 2008
What Happened:
Lehman Brothers heavily invested in subprime mortgage securities leading up to the 2008 financial crisis. As the housing market collapsed, so did the value of Lehman’s holdings. Worse, they were leveraged at a mind-boggling 30:1, meaning even a small downturn meant total destruction.
Fallout:
The firm filed for bankruptcy with $600 billion in assets, the largest in U.S. history. Markets around the world panicked, triggering a global financial meltdown. Trillions were wiped from the economy. Governments had to bail out banks to avoid complete collapse.
2.
Blockbuster – Netflix Offered to Sell, They Laughed
Failure Type: Arrogance, Lack of Innovation
Year Imploded: 2010
What Happened:
In 2000, a tiny DVD-by-mail company called Netflix offered to sell itself to Blockbuster for $50 million. Blockbuster laughed them out of the room. Instead of embracing streaming, they stuck to late fees and retail stores, completely underestimating the digital wave.
Fallout:
By 2010, Blockbuster filed for bankruptcy. Netflix is now worth over $200 billion, while Blockbuster has just one lonely store in Oregon that exists more as a meme than a business.
1.
General Motors – The Largest Industrial Bankruptcy in History
Failure Type: Mismanagement, Bureaucracy
Year Imploded: 2009
What Happened:
GM was once the world's largest automaker, dominating American roads. But decades of poor decisions — from clunky designs to bloated union deals and an obsession with gas-guzzling SUVs — left it vulnerable when the 2008 recession hit. As sales dried up, GM found itself with unsustainable debt, a declining market share, and no innovation pipeline.
Fallout:
In 2009, GM filed for bankruptcy with $78.7 billion in losses. The U.S. government stepped in with a $49.5 billion bailout to keep the company — and hundreds of thousands of jobs — from disappearing. It remains the biggest industrial failure in U.S. history.