Whether TradeFortress is honest or not his shennanigans reveal Ripple is a tremendous security vulnerability for anyone who uses it, unless you use an utterly paranoid set of precautions that have yet to be worked out.
Bullshit, it's only when the participants do not understand the concept of trust. By that logic pirateat40 revealed a tremendous security vulnerability too.
Yes, but pirate didnt say, I am taking your money and not giving it back.
Tradefortress said that here is an IOU I WILL NOT HONOR.
TradeFortress took direct actions to ensure that IOUs were honored, that is why he asked for the trust from the users, so that they would be honored, in a way that meant he personally incurred the debt with users who sent trust to him.
Only one user took 1 BTC, as a test, and offered it back to me.
*AFTER* that TradeFortress sent one of his IOUs for 15BTC to bitcointalk user aadje93 ripple address rMyHUbgreHFvvxoD5pGmg1fKRdSBHisy39 who then immediately withdrew 9.15 BTC to bitstamp.
See
https://ripple.com/graph/#rH3bZsvVUhzugvcYuJVoSYCEMHkfK6wHNvTradeFortress personally took these actions AFTER the entire thing was proved and tested, he issued a IOU to the above user so they could take the BTC he sent to them, the BTC he took from me.
It doesn't matter if he said he would not honor them, he took all the actions needed to honor them, they did get honored, and he incurred that debt with me.