The way I read this article, Bobby does not come off very well in this episode (though he may be a great person in general). He's the one who said Billy would throw them under the bus. And he's the one who drops his tone to calling Billy an asshole.

Billy is way off base thinking his company owns the code. That is clear. And his demeanor... I dunno, maybe he's not the kind of guy I'm gonna grab a beer with. But he seems to genuinely believe what he is selling, which to me just means he is misinformed. But all that takes is standing up for yourself, explaining... maybe rallying the troops. If the troops cannot be rallied... well I dunno. There seems to be an implicit acceptance of this agreement which seems odd to me. The reaction seems to be "Why didn't you tell us about this llc and your plans?" versus "Your llc has absolutely nothing to do with this team or our product. We'll happily switch to another domain. Everyone else aboard?" Yes, he has some power because he has forged the sales and has the relationships. But they mean nothing without the product. Just as the product means nothing without sales.

Anyway, having done a couple of these types of fast startup events, I think they're just rife with these types of situations. Nobody has gotten sleep, people are pushing themselves to the limit, and everyone feels emotional. Just not worth it.