The market will regain confidence once it figures out how awesome it is to be able to really aware of the problem, if it were a bank the investors would have no knowledge until it stinks.
What investors and "the market" make out of it will depend largely on the media. And i doubt that they will see it the way you and i do.
They're gonna have field day calling this a "hack", "crash", "broken system", whatever sounds most dramatic for the actual writers' article. And why wouldn't they? It's a good story, after all. Not necessarily true, but just too good to be wasted.
And yes, that will have an impact on the confidence of investors. They may be smart people, but they're also smart enough to not waste their time on really understanding the technicals of their investments.
Not all investors buy/sell on the panic of other people. We have had way too many markets creating huge problems underneath yet still spouting out good news all day.
If someone finds out that too much transparency is scary, so be it, but they may as well stay in the grand nanny's basement forever.
