"Code is law" is a dream that is not actualized. It's not actually law, it's just code. I'm pretty sure law enforcement will gladly prosecute for a lot of these "hacks".
This is why things like "land registry on the blockchain" will never happen. When a court decides that a sale of a house was unlawful, then the blockchain is wrong and irrelevant.
Code isn't law. Law is system that ultimately sends people to your house and puts you in a locked house that you're not allowed to leave, and lets other people live in "your" house now.
Math can't enforce who lives in your house.
Law isn't law unless it's been enforced through courts, precedent and ultimately someone with authority to use force to force compliance.
And these systems could exist. But they are not the systems that are being designed. They are in fact antithetical to the stated goals of all of these cryptocurrencies and smart contract systems.
Market manipulation, fraud.
I'm skeptical that any fraud happened here.