Handling this situation should be a top priority for AirBnB. There's the potential that the mainstream media could have a field day with this. The incident will undoubtedly be part of the hotel lobbyists' list of reasons AirBnB should be made illegal. And if the investigation reveals that they were cooking drugs in the place, that's even more damning.
It's disappointing to see this happen to one of the most interesting startups as of late, and I hope they turn around their attitude for the better. This is already really damaging, but it could be way worse if things don't change.