"Catastrophic loss of funds" - yikes! Please don't say stuff like this... or at least please don't let them be true... As someone who lost 110 LTC at Cryptsy (and probably one of the less affected) it's painful to think of another exchange going bust. It was even worse because immediately after reading this I withdrew about 1 BTC worth of MAID and the transaction failed and I thought I'd lost it. However a few hours after filing a support ticket the transaction was re-done and I got my MAID out. But for a minute there is scared me pretty good.

I honestly think their issues are just caused by scaling problems - even the biggest guys with nine-figure VC investment and billions on deposit have issues that are pissing their customers off (I won't name names but I'm sure you can guess).

I totally agree about decentralized exchanges - we so need them and we so need liquidity in them. I've used the one on the WAVES network and it was fine - good liquidity for the WAVES/BTC pair.