I don't trust the reporting to get all of the details correct, and I've read other articles also.

It's really hard to determine the real impact of this. It sounds like Reggie will either have to raise investor cash traditionally or pay out of pocket. Unclear if that will happen.

I'm not sure if, how, or why funds would be returned to ICO participants, as at current prices the token can be sold for far more than ICO price, so who would ever want a refund?

Perhaps if Reggie sold a lot of ETH at its highs, he has money banked to continue operations anyway. A lot of unknowns.