Because it was not foundation holdings! They have burnt unclaimed public air-drop, what has been promised before.
That is different. Baldur burnt the unclaimed coins but also transferred 1,000,000 coins to the foundation for development of Auroracoin.
Well, I also was a bit surprised by the decision of the Aurarad foundation to sell off 80% of the M1 fund. But I also remember the true nature of Balduro's vision, being adoption of crypto in Iceland. He developed Auroracoin for that purpose, but not as a single means. He initially transferred the M1 fund to an Icelandic trustee with a final request to use it to further promote crypto in Iceland, if possible with Auroacoin, but also in different ways.
The move was bold, I agree, but I stand behind it 100%, because it's the right move.
I'm looking forward to renewed development of Auroracoin in the future, especially now that we finally have a solid ground (IBF) to build on (with).
We will release a more official statement on things (including the "maybe temporary" delisting from Bittrex) soon.