Management that knowingly chooses to ignore a major issue should be charged with criminal negligence. The creation of the bug is a common and difficult to avoid mistake. But once it has been found, choosing not to change it despite being warned if the consequences makes you responsible for those consequences.
Sorry, this whole thread is a fantasy of nerds thinking they can create a punitive policy for behavior they don't like. But there is no actual substantive framework under which any of these fantasies can come true.
