The judge can impose sanctions for discovery violations up to and including entering judgment in favor of the other side. That’s pretty extreme but an issue sanction wouldn’t be unusual or (from what this article says) unwarranted.

That’s definitely possible, but would be pretty devestating too. That would probably only be employed if the judge believed that the evidence was being withheld, not destroyed. If magically evidence of said destruction ever came to light however? Prison.