With 5000 servers you wouldn't be a cheap ass reseller but own at least a part of a data center (a normal data center has space for 10.000-20.000 servers).
A hoster that big has an automated payment system and their prices and service would have to be pretty bad that one of their staff members would be able to get the people to another hoster without even one customer calling the service hotline and telling another staff member whats going on.If you can operate without 90% of the staff why couldn't you do that before (beside a few service guys so the answers are getting quicker)?
Every serious business keeps track records.Nobody knows who paid and who didn't situations don't exist in a normal business.Also no big company takes PayPal payments because their fees are just too high for mainstream.
I guess the offers were too good and it's a one man company with an owner who couldn't do the math (host now pay in a few months, one time hosting fee or similiar).
