Zulily’s stunning downfall | Microsoft wins key ruling in security lawsuit

Zulily was once a high-flying Seattle tech startup that went public in 2013 and was acquired by the parent company of QVC in 2015 for $2.4 billion. Now, in a remarkable collapse following its acquisition to a Los Angeles-based private equity firm earlier this year, the online retailer is closing three offices and laying off hundreds of employees, including nearly 300 at its Seattle headquarters, and more than 500 people across two warehouses. Read more.

• Related: Zulily hit with lawsuits from vendors

Microsoft won a key ruling in a lawsuit accusing the company of misusing a security threat intelligence firm’s database of more than 360 million compromised account logins and passwords. A federal judge in Seattle granted Microsoft’s motion to dismiss the suit by Hold Security, but left the door open for the Milwaukee-area company to refile. Read more.

Startup fundings: Clean energy deal facilitator LevelTen added $10 million to its Series C round, and a new Seattle-based company called Carbon raised $1.3 million to help developers manage LLM data.   

• Other funding news from this week: Veteran entrepreneur Vetri Vellore raised a giant $26 million seed round for a new startup, expense software company Center raised $30 million, and agtech firm Carbon Robotics raised $8 million. 

• See all the latest startup investments with our handy fundings list.

Whoa, starry night! On a winding path through the Seattle Chinese Garden, a new immersive light and sound experience called Astra Lumina plays off the natural surroundings and takes visitors on “an enchanted night walk amongst the stars.” See the photos and video.

Real estate and AI: Redfin unveiled a new tool called Redfin Redesign that uses AI to let home shoppers alter the appearance of walls, floors, and countertops on the company's listings. Read more.

Hot Links:

• Amazon refund scam: Amazon alleges that thieves "swiped millions of dollars in merchandise from the company through a series of refund scams that included buying products on Amazon and seeking refunds without returning the goods." (Bloomberg News)

• Hundreds of patients received threatening emails following a cyberattack on the Fred Hutchinson Cancer Center. (KUOW)

• Nearly half the respondents in a survey of legal professionals conducted by Seattle startup Lexion say they plan to incorporate AI into their workflow processes. (Lexion)