The likely holdup on that promised Season 2 of "Ratched" involves a contractual quagmire. "Ratched" was presented as a Netflix original production, but the streamer was really just the distributor. In actuality, the series was ordered in late 2017, and "Ratched" creator/showrunner Murphy produced Season 1 of "Ratched" through Fox 21 TV studios. Then in 2018, Murphy left his longtime home of 20th Century Fox Television in favor of a Netflix deal potentially worth $300 million.
Then in 2019, 20th Century Fox — and as a result, Fox 21 TV Studios — was purchased by The Walt Disney Company. Things got even trickier in 2023, when Murphy opted not to renew his Netflix deal and signed with Disney. That puts the state of his ongoing Netflix projects in limbo. The streamer has yet to order a third season of Murphy's "The Politician" or begin production on more episodes of "Ratched."
So not only does Netflix no longer have Murphy around to maintain the tone, voice, and quality of a theoretical Season 2 of "Ratched," but the company may not want to make another set of episodes at all. The series didn't have the same cultural impact or enduring viewership as did previous Murphy shows like "Glee" or "American Horror Story" or the Netflix-era "Dahmer." Netflix could simply find it more economically feasible to not make more "Ratched" and cancel its Season 2 order.