Great point, I'm sure nobody at uva knows who is in the phi psi house.
And surely it's members' reputations will be forever tarnished.
I'm not saying RS didn't screw up in a catastrophic way, but lets tone it down just a tad. A year from now, anyone who paid attention to this enough to remember that it was the phi psi house, will definitely remember the widely publicized retraction.
If the RS had exhibited a modicum of candor or integrity in its reporting, you might have a point. Still yet, if it had exhibited the slightest bit of remorse for the damage it's recklessness caused the fraternity, it could be forgivable. None of that happened, which makes its actions malicious and unconscionable. In our society, that warrants harsh punishment.
Since its a corporation and not a person, we probably can't punish it though, because corporations can't do anything that's not corporate-y, by the silence of the constitution.