It's not a case of stupidity but rather a judge's interpretation of current law as argued by a barrister.
In a very simplified example, accountants have to follow the same tax laws for their clients. Some firms cost _significantly_ more than others because they have an army of lawyers who find legal loopholes that can reduce the tax bill.
Karsa will likely use their YC cash to fund these lawyers in different countries when issues arise. They might decide to stop fighting and close business in that country.
In a very simplified example, accountants have to follow the same tax laws for their clients. Some firms cost _significantly_ more than others because they have an army of lawyers who find legal loopholes that can reduce the tax bill.
Karsa will likely use their YC cash to fund these lawyers in different countries when issues arise. They might decide to stop fighting and close business in that country.