Solar Bankrupcy

The bankruptcy of Solyndra has now brought in the FBI. I'm sure most folks
are well aware that they got about half a billion in loans from the US
Department of Energy before going bankrupt.  That's a fair amount of money
for a company.  I wonder if anyone knows if

1) It was a boilerplate operation designed to fool the US government.

2) Horribly managed....and blowing half a billion with little output is real
bad measurement.

3) An honest problem: it is impossible to compete with China on solar panels
because they can produce them without regard to the energy needed to make
them or the pollution caused by the process, and pay their workers far less
than workers in the US.

4)Some combination of 1, 2, 3?

5) Something else

Best Regards,

Dan