When did HF finished delivering Batch 1? What do you mean by "HF didn't anticipate having to spend "all the money" on PCB reworks plus other expenses (and later, refunds)"? Didn't they hire two or three PCB contractors? Why did they spend all the money on PCB reworks since they hired two or three companies to do the PCB job? I don't understand. Why did they have to pay extra for something they paid in the first place? Please explain.
The answers to your questions are in this thread and/or available in the public documentation.
Have you been under a rock for the last year? Most of us saw all of this happen as it occurred and don't need a recap...

Ok.