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So here is what it seems like happened
1) Jay got money from a successful Kickstarter which reached many stretch goals for a game called "Super Retro Squad" and was due to be released by March 2013 (5 months ago from today). It has been suggested this was a thinly veiled attempt to make a profit from the illegal game Super Mario Bros Crossover.
2) Jay and some people bought a house, made a video about it
3) They made a dance video and Jay did a let's play video
4) Radio silence from Exploding Rabbit for months.
5) Jay makes a video to ask for MORE MONEY with nothing whatsoever delivered besides a few mock ups and what appears to be a very basic simple demo of a character jumping and collecting coins.
6) An update to the illegal game Super Mario Crossover was released, and as stated by Jay Pavlina, for the strict purpose of making money and attracting people to his site to make ad money.
7) Now people have been told development BEGAN in August 2013 and the scope of the project has changed significantly with no discussion with the share holders (Backers)
madness ladies and gents...