When this bet was made, the BTC price was way lower (I haven't checked exactly how low). It's feasible that the site cashed out those BTC at the time for whatever reason, and the time has now come to settle with the winners. Oh dear, the price has quadrupled (or whatever) and it now costs way too much to buy back the required coins. Call it a draw, problem solved
Just throwing it out there.
That's a pretty serious accusation, and one that's probably pretty much impossible to prove either way.
Honestly, I'm starting to think coinjedi just made a really bad mistake, but with no ill intent. It's a lot of money, and ideally the winners should be paid what they should have won. But it's pretty easy to see who caused this whole situation.
I'd be surprised if coinjedi wasn't angry at Luke and Josh for causing him to undermine the integrity of his site, as well as costing him his comission.