+1000
Well, first, it is amazing that high profile bitcoin luminaries would keep any amount of serious money on a remote website. When bitcoinica first appeared, pretty much 100% of bitcoin web wallets had been hacked and most had been DDoS'd as well. Your own encrypted, decentralized, backed up computer is far more secure than (at that time) that proven track record.
And, as you say, who would trust that much money to a teen running a fly-by-night website, who had no experience in the area of finance in question? Especially given HK's reputation it seemed likely that Bitcoinica was a bucket shop or possibly associated with organized crime in some way.