The practice also has a whiff of the plot of Mel Brooks’s “The Producers”. The original idea of Brooks’ hustler protagonists Max Bialystock and Leo Bloom was to mount a play so awful that it would close immediately, and they can live off the unspent money they raised from bilking old ladies. When the show unexpectedly becomes a hit, they blow up the theater.

The biggest difference between the plot of “The Producers” and what happened to “Batgirl” and “Coyote vs Acme” is that in “The Producers,” the public got to see the play.

Truth.

Source: Why Deleting and Destroying Finished Movies Like Coyote vs Acme Should Be a Crime | MZS | Roger Ebert