Never underestimate the power of hype. When Groupon's clattering clown car went public today, its stock soared 40% to $28 a share from its IPO price of $20. Groupon CEO Andrew Mason—that Andrew Mason—is now worth $1.3 billion. Happy Friday!

Groupon's long journey from flailing startup to multi-billion-dollar Wall Street obsession has played out like an opera, with subplots involving orgiastic young sales reps, brutal German managers, a puppet-master chairman, and amazing levels of greed. Business Insider's Nicholas Carlson went behind the scenes, talked to people in the know, and filed the sensational report that appears below.

What a basketcase: Groupon has slashed its proposed valuation to $12 billion from $30 billion as it ramps up for an initial public offering. So if you're in the market for a technically insolvent online discounter with shady accounting, now is the time to buy! Goldman Sachs is involved, so you just know it's a good deal.

Here's another sign, if one was needed, that Groupon is coming unhinged when it can least afford it: The company's COO, Margo Georgiadis, has jumped ship after just five short months for her old employer, Google.

There's something charming about Andrew Mason's goofiness. "I feel like clout is something that builds up on your teeth," the Groupon CEO once told Today in response to a question about his influence. But with two top lieutenants out the door in as many weeks, you have to wonder if the antics are starting to grate.

Because it loses tons of money, Groupon is promoting its IPO using an inflated income number that excludes marketing and customer acquisition costs. Why would you do that? Well, that's exactly what the SEC is now asking.