I disagree with the author's conclusion that Sotheby's will lose any credibility from this incident.

Modern art is crazy. A painting that shreds itself is pretty mundane by contemporary standards. If the shredding was an integral part of the work as intended by the artist, then Sotheby's has done a great job showcasing all the features of the work. Now that they've demonstrated an ability to handle unconventional works like this in a controller manner, I wouldn't be surprised if even more elaborate contraptions that blur the line between art and technology begin to come up for auction at Sotheby's.

Besides, the shredded painting will likely fetch a much higher price if it ever comes back to the auction.