Who's the engineer that fucked up at Equifax and leaked all our data? Or VW Dieselgate? How many people know his/her name? Does anyone? When you're a cog in a large machine, it doesn't necessarily come from a place of incompetence or malice, though it might. Usually you're busy fighting the fires on your team and your scope and have to just assume someone else is fighting their fires competently. Which, if we're looking at Replit, as far as I know, aside from having the AI go rogue in a widely publicized incident which wasn't company ending, they weren't hacked before this announcement, so other than telling someone to wearing their seatbelt, it seems like they got lucky and got away with it.

At the executive level, look at it as a resource allocation board game. If you put points (money) into security, that's points you can't use elsewhere (sales & marketing). If you don't make any sales, it doesn't matter how cool and secure the product is. No sales means no money to pay for rent or food.