Yes, but the leve was functioning properly as they programmed it. And that's the key. How people used the leve was immaterial, there was nothing wrong with the leve itself. No one got disciplined by that. Same with Garuda, they didn't expect that people would figure out a way to beat her so simply. But that's how they programmed it so they just had to give kudos to the players for being so clever and strong and eat it. Same with the case of Atomos.

Contrast that to the Cure spamming exploit at launch. That was NOT working as intended and if people didn't own up to exploiting a clear programming error and accept the rollback of characters they were disciplined, at times permanently.