As long as they can be responsible, I don't think there's a problem. It's a bit of a shame that they lost so much money on something so insignificant, but that's a consequence of their own choices.

There's nothing wrong with their decision, as everyone is free to make choices and has the right to choose. I just hope they soon realize that investing their money in something more beneficial, like investing, is much better and more profitable in the long run.