I'm "connected" to BitBet inasmuch as I represent MPEx here on the forums, and the owner co-owns BitBet itself. I see that you already talked to actual mods on IRC.
It's disingenuous for you to join this conversation without explicitly stating that you represent Bitbet (which your statement leaves no doubt of - in spite of the quotes around "connected"). No one in the IRC would declare their association with Bitbet, so no - I did not speak to "actual mods" on IRC.
Sigh. I understand that it's hard not to take it personally when you've lost BTC, but no, seriously [...]
To suggest that I'm "taking it personally" is to sidestep and downplay the issue at hand: namely that your site's
policy is unjust and disreputable.
[...] with a zillion "services" out there run by the unskilled who won't tell people what they've done wrong, and instead try to band-aid over things with "being nice" until they inevitably fail and take everyone's coins with them [...]
This is irrelevant.
What's the actual reason for BitBet to steal the coins in this situation ? "You're screwed", as it is written in the FAQ, is not a proper answer.
Explaining to users quite amply and repeatedly that going against sense and acting in a particularly risky manner is not wise and will not result in refunds, and acting accordingly, has nothing in common with stealing.
You still haven't explained the reason that Bitbet steals the coins - I only went "against sense" and acted in a "particularly risky manner" in the context of your site's
nonsensical, predatory policy.