This is my impression.

- You did this without knowing that rep loans were pretty bad
- You seem to regret the decision, now and back when it happened
- You did some giveaways before this and it seems improbable that you would sell your feedback for dust, as quoted by KWH.
- IMHO, you seem like a good user. Just from my opinion, though, so I won't take this into much consideration.

From that, I personally think you should be given a second chance. It's understandable that you gave the loan without knowing, and, like I said, you seemed genuinely sorry for what you did back when it happened. There have been plenty of cases where people like you have messed up along the way, were forgiven, and went on and showed BitcoinTalk that they were great people.

We're humans, and we make mistakes. I'd say this was somewhat of a mistake (somewhat, because he didn't realize) and he deserves a second chance.