The inevitable demise of a group due to a growing amount of errors. EVE Online
coporations use this term to describe other corporations as they come to an end.
Failure cascade is the inverse of a network effect. Websites like MySpace define their value by the people that use the service just as gaming communities define their quality by their members. As bad events cause users or players to leave or become inactive, the quality drop leads others to do the same in a spiral that rarely stabilizes, until no one is left.
Their leaders don't even want to log on anymore, they're in failure cascade.