If the PayPal funding does get canned I doubt it'll be due to Yu having everything he needs (he wanted $11m after all) and more around these issues they had.
Yea it's possible the additional funding has been sourced but the investor(s) would be looking for a return on that investment whereas the only return the fans would expect are the rewards they pledge for.
Either way there really should be an update- even if it's to say theres no update!