Death spirals are still around, there is just more SEC regulation now. Under the terms of a good PIPE (which implies a good underlying company and a well sold story), there might be a lock-up on selling and there is always a no-short clause. Sure, a fund could still short but that would be illegal. The majority of toxicity in a PIPE now results from a convertible debt spiral in which a hedge fund can convert at a discount to market (floating) and sell those shares at market, diluting the stock with no real value-added.
When I say dealing with PIPEs is more entreprenuerial, I say so for two reasons: (1) If you are doing PIPE transactions, you are at a boutique bank and boutiques are inherently more entrepreneurial in nature (theres a closer connection to the business aspect and less bureacracy), and (2) it is much easier to sell large transactions that small ones, so dealing with a PIPE-calibur company usually means you are more connected to the company than in say, a transaction with GE where the story is already there and really the only issue is "whats the price." If I need something, I usually just go straight to the CEO or CFO. Its really just a different ballgame.
I am not advocating PIPE transactions or dispelling them. I'm just noting that people often misconceive really what a PIPE is. GE will not seek a PIPE, but there are plenty of large companies that relied on PIPE financing at their early stages.