You did however launch a "contest" to demonstrate the soundness of using browser Javascript cryptography to protect user secrets, and made exactly the kind of slip-up that trivially demonstrates what a bad idea browser JS crypto is: to wit, your application couldn't even protect its own pages, let alone use them to safely deliver crypto code; you provided an ambiguous address and didn't properly lock the server down to SSL, so you couldn't even rely on users getting to your app under SSL.
Your app wouldn't have demonstrated any of the security value (largely nonexistent) of browser JS crypto even if it had been careful about SSL hygiene. But you spared Moxie the trouble of making that case.
Somehow I doubt Moxie cares too much about the $1000, but: you screwed up, lost the contest, and then (from what I can see) weaseled. The real point isn't "pay Moxie $1000"; it's, "don't try to run contests like this".