I really don't know what was Luke-Jr setup, that's why I still have my doubts that this story is for real.

franky1 has a post in another topic which could be relevant information (if it's correct, which I don't know). There may be that some of the old/original bitcoiners may have a different view on what is cold storage and that wallet may have been exposed to his LAN, which probably got compromised.

Of course, while any minimal security measures were okay 10 years ago, anybody with a sense of reality would know that more and more security is needed with every year passing and every more dollar on the price.