It doesn’t deal with code, it deals with chat transcripts, and only those in the directories you explicitly choose to share (yes I know transcripts include some code but you’re not sharing a working app codebase or anything close to it).

The entire purpose of Startup School for YC is to build great relationships with the most promising talent. The scale and cost of the event is vast, and the benefits for attendees are huge.

It’s a three day event with main-stage interviews with several top figures in the tech world and many other intimate events with YC partners, industry experts and fellow attendees. Much of the effort in organizing the event is maximizing the chances that attendees will meet other attendees with things in common so they can build relationships and maybe work on important projects in the future. Of course, YC hopes to be able to fund the most promising startups that come out of this, but nobody is obligated to apply to YC or take YC funding if it’s offered.

What I’m trying to convey here is that it’s in YC’s utmost interests to build trust and earn respect from the people who are participating in these programs, and there is no way in a million years that some code or implementation detail exposed in a chat transcript is going to be more valuable than building very positive, mutually trusting relationships with all participants and applicants over the long term.