It would have been infinitely better for both the creator and the backers to declare it a failure a long time ago and end it then and there.
Sometimes, you really need to understand when it's better to cut your losses. This is one of those times.
Can Kickstarters legally fail? I haven't looked too deeply into it, but it seems you can delay them to infinity, but you
have to deliver something at the end, even if it is a cop-out leaving everyone disappointed.
Sure, it'd be cleaner to admit failure and take the final dose of the rep hit, but if doing so would expose GMS to refund claims, he can't really back out - pretty sure that money is all gone, and no release now would recoup it.