I doubt they are a total scam. They aren't doing great by any means, but I honestly believe they will eventually fill all of their orders. I don't think they anticipated the response they got.
If the problem was the number of orders, they could have at any point stopped taking them. That's what any reputable business does. If you go to a store and they don't have what you want so you get a raincheck, they don't say "pay me now and we'll give it to you when we get it." They let you keep your money and pay AFTER they get it.