Thanks for the update, I'm travelling for work so I can't even game right now. :(
I guess that verifies the punishment will continue into the game. In the end it really doesn't matter. Those who just wanted to play will soon forget all this drama. And those who cheated hopefully will learn "something" but I doubt it.
I just hope co-op play has and will benefit from Lionhead's attention to this. Whether or not it was a trap or a real glitch has no bearing and thankfully, is being dealt with.
Me and my wife are seperated...she's in the other room.