....the place is bleeding active users !
What difference does it make if we can have space for 100 million users if it has a reputation for being crap, and is empty?
A bad reputation is hard to recover from....
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The active users who know what is going on here aren't bleeding, they are developing a place where active users can be supported properly. What you are missing is that without these steps, there is no way to stop any bleed but many of those inactive users are likely to come back once the platform has a better process.
Well, I hope I'm very wrong...