What is the real harm of not rescinding this guy's internship? Seems punitive and petty. It's not like anyone actually believes that FB cares about privacy. Whatever reputation or brand damage there was done a long time ago by FB's repeated violations of user privacy, which is just the natural state of things given their advertising-based business model.

FB could have turned this around and scored a marketing coup: "look we're hiring the hacker who exposed a security flaw, he'll be patching up the hole he found this summer - because at FB we're committed to user privacy and saving baby harp seals!"

But then again, is this really a big surprise? Just another data point in the growing contradiction between what SV is and what SV wants to be.