If the type of trading discussed in the article becomes more common, would market makers stop making markets for these deep out of the money options? Presumably this would be bad for those attempting to use the options as a hedge.
What would probably happen is tweaking their risk exposure: be less willing to play large resting bids/asks for large positions close to the NBBO, and instead either resize them or layer them over several price points.
My feeling with regards to the fairness of this is that one should not offer to sell 4,000 PUTS for e.g. Zynga at $1 in May 2015 unless one is prepared to accept delivery of 400k shares of Zynga in return for $400k. Some options market participant is signaling their willingness to do that, or something close to it. They are theoretically responsible adults who know the risks. If that trade blows up in their face, and they take to the Internet to decry the unfairness of it all, I will not be maximally sympathetic. (Full disclosure: I was probably their counterparty a time or two buying the option on "Zynga blows up in next short-increment-of-time" and did poorly.)
I'm sure this trader has programmers working on this problem and putting in some type of limiting such that he doesn't sell off 3000 contracts in one go for a very cheap option close to expiration. 3000 contracts is nothing in SPY options but for a single name stock (not an ETF) it can be considered a sizable trade compared to the open interest.