1. Funds from an individual Coinbase account are transferred off of Coinbase onto another Bitcoin wallet.
2. The owner of the Coinbase account claims they were hacked.
Obviously I like the idea of Coinbase making account holders whole, but that creates a moral hazard and also incentivizes account holders to commit fraud themselves. What if I give my friend my credentials and he drains my account? On the other hand if I lost money on Coinbase I would be complaining all the way until I got my money back.
There are controls that can minimize damages but sacrifice usability (make withdrawals whitelist only etc). I think they have a "Vault" product that has multi-sig and time-delay options for users.
Reminder to use hardware multi-factor (like yubikey) if you own a lot of cryptocurrency on an exchange. An authenticator app is the next best option.