The truth is that they started to die when they were forced to introduce KYC rules.
Since it was one of the reasons people traded there, they moved to another place
You can trade on Binance before without KYC, but Binance had no option than to make KYC mandatory. Yet, Binance remain as the exchange with the highest trading volume. Although, some people that are concerned about KYC left the exchange at the time. Jeremias Kangas founded Localbitcoins in mid 2012. 2022 crypto winter wasn't the first, that makes your post valid, but regardless of what happened, it is still about the survival of the fittest, but not necessarily about KYC as well if other things has been in place. Although, I am not disputing the fact that KYC could have been the reason for the start of Localbitcoins collapse.
Well this is what i was about to say... that only KYC could not be the only reason and even the crypto winters... The only reason i could find valid is they never made changes but then again they have been doing business all this while,... so possibly i think the owners have been fed up of the things going on... they have been legit all the time ... and that could be the only reason they have left the crypto space...