"There are two important rules in [the situation MoviePass is in] : (1) watch cash carefully and (2) watch cash carefully. If the business runs out of cash, it has committed the only unforgivable sin in business." If only someone said this 7 months ago. google.com/amp/s/25iq.com…
Who could have predicted that "merchant and fulfillment processors" would stop processing MoviePass transactions if they were not paid? businessinsider.com/moviepass-outa… Cash was raised via a demand note which is payable on, well, demand.
In a subscription business the equivalent of an tsunami is called "catastrophic churn." That happens when a wave of customer terminations hits the service over a short period and turns previously paid customer acquisition cost into unrecoverable capital. google.com/amp/s/www.thev… 
