Comment by Imustaskforhelp

To be honest there is one instance that i know of where what ends up happening is that colocrossing a major vps provider does end up doing something like this (they used to be hosters/owners???? of lowendtalk/lowendbox)

Now another aspect is that the hosting economy is very mutual, they all start out somewhere and they are usually friendly towards each other. Most Hosting providers start out by either using reseller service directly or by colocating or by reselling dedicated servers which can be themselves of other providers

I don't know but the community is both cut throat and chill at the same time. It's strange to point this phenomenon but I think my point of their friendliness is something which depends and I don't know much about it but I once asked people on lowendtalk if I wanted to create a cloud provider myself and I got some responses and they were friendly so I am basing it off of that

Another aspect is that the market has already raced to the bottom super hard. Hetzner/OVH are really cheap, so to get even cheaper, you kinda have to be in the same pricing range I guess

Fun or not so fun fact but do you know that there have been cases of lowendbox providers to actually go shut down because they take these completely no profitable sense deal and actually lose money sometimes. VeloxMedia is a recent example of that and there is still controversy surrounding it.

There is also the fact that the scam industry in this department works as such:

Rent a really big server with lots of cores for a few months

Sell them unreasonably in LET for the year pricing or more

Then sell the company/be unable to provide/etc.

these I think are called as deadpools in the community.

Also regarding your comment behind same guy, there are sometimes family relations between people

as an example, racknerd I think is owned by the stepson of the owner of colocrossing and they I think using colocrossing themselves.

These have their own little drama stories and I think this is just the tip of iceberg as I just joined recently and probably digging through old archives.