Colin said in his tweet that the prototype sale “has an element of occam’s razor” (he really means Hanlon’s razor). So it would seem to be the former.
However Linus’s reaction to the incident was the latter. He should have put his company on the line, bought it back at whatever ridiculous price would have convinced the buyer, and sent it back all expenses paid to Billet Labs. That’s how you own a fuck-up.