Oh this thread is great in showing that side of ripple which most people don't understand and are not even aware of. The way the system works basically looks like a three-click scam creator for script kiddies.
The problem is that the default 'quality' factor of newly created trust lines by the client is a bad value. It should be zero (meaning "don't ripple through me") instead of one (meaning "exchange these IOUs for any other IOU I trust of the same currency at 1:1).
I've opened a
GitHub issue on it.