Twitter clearly mishandled it. All they needed to do was give the option to post longer videos. Classic example of a large company buying a small innovative service and destroying it for no reason. I assume they thought it was too similar and in competition with Twit’s existing ability to post videos.
The video length was pretty limiting, though. Instagram at the time started doing 15 second videos. The six seconds lent itself to goofy comedy and not much more.
It seems like they should have sold it. Or just jammed in a bunch of ads… maybe an option to remove ads with a paid membership. Simply killing it doesn’t make any money other than to avoid losing more, and they’d already invested a fair bit which you can’t recoup by just closing something. Of course, Google does that all the time I guess.