There are some possibilities. Binance could have just done so knowing that FTX's demise would concentrate their own market share. They also could have (sensibly) not wanted toxic assets on their books - FTX's book value was/is deeply negative so holding tokens correlated to a basically insolvent entity and/or buying them is just a bad trade that hurts their financial position.
It's ruthless but I don't think it says anything about their finances. Their play made sense whether they were strong or weak.
I agree with this. There are many reasons why Binance would say they'd buy FTX and there are just as many reasons for why they would back out of the deal. Binance reneging on the deal doesn't say anything about the state of their finances other than that they might not have been in a position to take on 32B in liabilities.
It's ruthless but I don't think it says anything about their finances. Their play made sense whether they were strong or weak.