I agree @lukestokes , this will help to brainstorm different ways to avoid this situation in the future. Perhaps placing an obligatory restriction that witnesses could not be created on same datacenters, same servers, etc.
Perhaps a rule on the smart contract similar to PROSPECTORS Gold game that their is like a police. So, when someone makes an attack like this one or similar types, all the stake being powered up is frozen for lets say 1 year, or even according to the type of attacks, it gets frozen more or less amount of time. Your thoughts?