Should an escrow be liable for any loss of such funds and get tagged till such a repayment is done?
Yes. Whether it's a third party escrow or the bounty manager himself, the liability falls to whoever holds the funds.
With that being said, I totally agree and understand if much of the users in this forum would paint my account red. I was too full of myself thinking the funds are safe sitting on a hotwallet. I should have known better than to trade the security of the funds for the convenience of using a hotwallet.