...This could kill all the crypto!...
LOL, not a chance in hell. When it crashes and burns it'll just get more peops interested.
But when you have gathered $200Mn from the "masses" and there are so important security flaws... that's a BIG FUCKING PROBLEM. Then these "other people" have another BIG excuse to get involved and guess what may happen next?
It is all part of the game. The ecosystem is the game. I think Heuristic was correct:
https://bitcointalk.org/index.php?topic=1505886.msg15233191#msg15233191