Personally I think Monero will recover from this, although it might take some time.

I don't think XMR has ever experienced such a seismic shock like this in all its history. I was just watching Adam Meister's video about it, and he raises the important point that if fluffypony cannot be trusted as a consequence of this one event, then how are people supposed to trust him when he speaks out about scams.

Personally I don't think fluffypony acted like a jerk, or engaged in insider trading. In his mind it probably seemed like a good creative idea of raising an valid issue.

The problem lies in his shortsightedness. It should have been very obvious that:-

1. People would have lost money.
2. Seen from a distance it looks really scammy.
3. People shorting XMR would have propagandised point 2 which leads to even more of point 1.
4. The usual antagonists would have seized upon all points and propagandised them for the purposes of their own projects (desertlynx etc).

I'd like to say this is a storm in a teacup, but frankly this is a completely unnecessary and negative event which will require a lot of ongoing maintenance moving forward.