If it's true that KNC is the largest block of machines on the market, I cannot help but think that it was predictable what the last news caused (refunds) and that it would cause a drop in BTC value.
Now would be the time to sell module upgrades of course... and for obvious reasons now that BTC value is low.
I don't expect KNC to sell all the coins they mine so that there will be less btc available on the market=higher price for BTC.
I think in the future we will test one more time the democratic system and large pools or large hashing farms holders will become like political parties who will rule where will bitcoin go. Time will tell.