Based on what Lauda's feedback states, I think it was pretty harsh.  Lauda might not trust eddie13 based upon his words, but that's a judgement call on Lauda's part that seems to be questionable.  Myself, I wouldn't have left eddie13 a neg for that but that's just me.  Lauda is free to distrust whoever he/she wants, and if any DT or non-DT members disagree with the feedback enough, they can counter it.

Is Lauda still on DT1/2?  I've got them on my trust list so eddie13's neg shows up as trusted, but as DT members keep getting rotated in and out, I have a hard time following whether certain members are even on DT2.  I'm assuming Lauda is on some level of DT, which makes that feedback suck for the recipient even more.  In any case, there's no much that can be done about it unless Lauda is removed from DT entirely, and I tend to think he/she does more good than harm--but at the same time I hate to see feedbacks like this one and flags like the one Lauda created against a member that I felt obligated to oppose. 

The trust system shouldn't be used to neg members based on a difference of opinion or an interpretation of someone's words that seems kind of a stretch.  Excluding them from your trust list might be a better option, but a red trust doesn't seem appropriate IMO.