Seems a reasonable conclusion. The primary hull was a thick carbon fiber tube, and while carbon fiber is a very strong material in tension, it's not great under compression. Really makes me wonder who thought this would be a good idea.
The polymer matrix often used in CFRP is very strong under compression though.
IMO, OceanGate's choice of material wasn't the problem but the choice to use tube-shaped pressure vessel instead of spherical shape as all other deep submergence vehicles are using. Although tube-shaped pressure vessels worked quite well for military nuclear submarines, military subs have much shallower max diving depth and watertight bulkheads dividing the pressure vessel into several compartments offer additional reinforcement against outside pressure.
The problem with using tube at such great depths is that it only takes a miniscule amount of deformation of the tube to cause massive differential in overall forces acting on the tube, triggering further deformation and even bigger differences in forces and rapid progression of failure of the material and the eventual implosion.
Such event can be triggered by an imploding camera or lights outside the vehicle. If I remember correctly, Rush decided to hardware-store grade cheapo security cameras outside the sub. If one of these cheapo cams imploded, the shockwave can cause enough deformation of the pressure vessel to eventually cause it to implode.
Any miniscule imperfection in manufacturing that can cause the tube shape to even be imperceptively off-circle in cross section will cause massive cyclic stresses from repeated dives with the massive differential in forces acting on the tube due to the manufacturing defect. Weakening the structure or even lead to undetectable cracks after just a few dives.
A sphere would have much greater resilience from such problems because the shape is reinforced equally in all three dimensions. However, it may be quite difficult or even impossible to fabricate a perfect pressure vessel using carbon fiber plastic. A lot easier (and cheaper) to do it with tube shape, but not sphere. A greater diameter spherical vessel made entirely of titanium as many other DSV's are using is guaranteed to work safely but is likely more expensive than to accommodate the same number of people in a tube using carbon fiber.
Many of OceanGate's decision to make their unorthodox DSV is to cut costs. Perhaps, they went way too far. Even the external cameras are cheap hardware variety...Note that if the cheapo camera imploded (because it's cheap....), the powerful shockwave from the camera's implosion, can trigger further implosions like the catastrophic implosion of the pressure vessel housing the human occupants.
Hard to believe OceanGate didn't know about the danger of imploding cameras / lights outside the vessel can implode with the force of an exploding grenade. Had they known about it, they wouldn't have cut costs with camera equipment.