He claims that a lot of people borrowed from him to invest in Pirate, despite having sworn otherwise. When Pirate defaulted, they were unwilling to dip into their personal finances to settle a debt that likely wouldn't be enforceable in any court of law. There is no way to verify this, but it is precisely what lots of people warned would happen. It's also possible Patrick significantly exaggerated the extent to which this happened and walked off with a bunch of money. We don't know.