They aren't allowed to stop making markets, at least in the options market. (This is not true of market makers generally. You or I could, if we had a lot of money, start making markets in any stock we desired to, just by getting a brokerage account and sending the right orders to the exchange. A market maker is a participant like any other and may not be a formal role.)

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.)