"is he a genius or in denial?"

It's down 90% off the highs. Not sure how it could be anything but the latter. In any case, he seems to operate with the approach of being a terrible person to anyone who dares question him.

"Market seems to indicate its in trouble, or is this just over reaction to their losses in August and fears of a Zillow-repeat."

Rising rates is/will continue to have a considerably negative effect on the housing market. As much as I'd like to believe that someone can succeed in creating a one-stop marketplace where someone can buy a home, sell a home and count on this company for everything in-between, it would appear at this point to be unrealistic.