Maybe MagicalTux should try to get some insurance against fuckups like this. Might be expensive and put a lot of hassle on him by ways of auditor wanting to see all code pre-production
500k BTC are uninsurable, because it is practically impossible to replace them once lost.
Irreplaceable items are insured all the time. Artwork, pro-athletes legs, one of kind diamonds, etc.
The larger issue w/ insuring Bitcoin losses would be the inability to verify they really are lost. Not so much in this case but if coins were sent to a wrong but valid address w/ no private key (or wallet/backups were corrupt, lost, etc) it is impossible to verify the coins are really lost.