I was thinking that LocalBitcoins have came back to their service but I was wrong with that thought and yes, that's paxful that came back and lively again. But I don't think that the same welcome from its former users will still be there.

@OP, with all of the potential reasons why they have to close their service down were already said. Bear market, regulatory pressure, not enough funding and lesser volume, etc.

But I wouldn't be surprised if the former executives of it will join force with other the same service for them to render what they've applied and learned from this company they've established.