As I understand it, Solyndra had a working solar technology far superior to anything currently being sold and that they convinced reporters and investors that the only hurdle to be overcome to was to bring unit manufacturing costs down to commercially viable levels. It was thought that this could be done while keeping the manufacturing jobs in the USA. The Chinese responded by increasing subsidies and generally lowering the competitive price of solar panels world wide.

It seems to me that it was a risk worth taking, and that intense interest in the project in the Department of Energy and in the Administration was understandable.