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Valve's actions and commication aren't defendable, but the whole incident is blown out of proportions. Yes, it was pretty serious. No, it didn't do almost any actual damage. It was an attempt to mitigate a DDoS attack, which are ridiculously hard to mitigate effectively and I imagine preparing for them isn't easy either. You just need to react to it somehow, and because of the difficulty of preparation, mistakes are bound to happen more or less often.