So basically after reading that, I put two parties at fault:
1) Brian Hogan + his accomplices.
2) Brian Lam (+ Gizmodo management)
It is unfortunate that Jason Chen, as an employee with full backing of his superiors, is having his life ruined, when all he did was do his job and report on a story. Usually in these stories, an employee goes behind the company's back to do unethical things, and in this case, it's clear that there was approval there.
With that report, I no longer believe that Powell "lost" his phone, and rather it was stolen from him. With the actions that followed (the bidding, hiding evidence etc.), it's clear that Hogan knew what he was doing.
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