Digg

Digg's collapse from $175 million valuation to $500,000 sale in 2012 shows how platform changes can trigger user exodus. The social news site redesigned in 2010 (Digg v4), removing features users valued and adding algorithmic content selection. Users revolted, migrating to Reddit. Within weeks, Digg's traffic collapsed. The company sold its assets for parts. Digg demonstrated that platform operators serve users; forgetting this creates existential risk.