Or it could be outright fraud. I was a victim of a person who made big promises and I finally had to take them to a debt collector. My sympathy level for people who do this sort of thing is at a very low ebb.
Some people are taking the extravagant behavior as sign that he's mentally ill.
But, as you are probably aware, the extravagant behavior could be a cold deliberate move, an attempt to get people to give him money. "Look, I'm a rising star, I'm rich, hook yourself up to me." Lots of con artists flash money to get people to trust them.
I think the best thing here is to let a court of law determine this. Either way, a lot of people got hurt. There has to be some level of culpability for committing a crime.