Ugh. That sux. Though it sounds like the chute did deploy, but the front attachment point(s) failed and didn’t allow the canopy to fully open.
One thing my CFI drilled into me was (and as Shephard stated above), “Altitude is your friend.” Not sure of the circumstances, but if it was true this pilot was doing stall practice, I would have hoped he/she started with sufficient altitude for spin recovery.
If you read the accident report, it sounds like this particular airframe had dangerous stall/spin characteristics, and that's probably why they pulled the 'chute. Unfortunately for them, the parachute installation was underengineered and it failed under a load that was most likely were within its expected design limits, sending them to their deaths.
From the NTSB report:
Metallurgical examination of the separated front anchor revealed that it had been bolted into
aluminum bulkhead skin that was about 0.022-inch thick. Although the anchor and seven of its
eight bolts remained intact, the surrounding aluminum skin of the airplane had separated from
the airplane in overstress. Without any additional supporting structure such as longerons,
stringers, or bathtub fittings, it is likely the thin aluminum skin could not withstand the force
applied to the front anchor during parachute deployment.
That sounds like gross negligence, if not criminal negligence. This shows a limitation in the LSA certification process. The manufacturer self certifies the airplane, if they cut corners, there's no independent third party to ensure compliance. Whether the harsh stall characteristics are characteristic of the type or specific to that one airframe we don't know, but the substandard parachute installation provided nothing but a false sense of security.