Earlier quoted context omitted.
The issue is that Bollea dropped a part of the lawsuit that would have allowed the award to be paid out by the insurer - that reduces both the likelihood and amount of money that Bollea will receive, on the face of it, acting in a manner contrary to his own best interest, and in Thiel, lawsuit financier's, stated interests.
>acting in a manner contrary to his own best interest Hogan is a famous, well-liked millionaire[0] already. And he almost certainly doesn't like Gawker. So maybe he thought, "I can give up some of these millions and these parasites will not publish another damned lie again". In return, he also gets the eternal gratitude of people who hate Gawker (all decent human beings). Seems like his actions align quite well with…
Your own link says he is no longer a millionaire. He changed from financial motivations to moral superiority after the investment of someone who wants to destroy Gawker (not that Hogan might not also want that)... reducing your ability to receive damages doesn't seem to align to me as well as it does to you.