The phpfog guys really deserve praise for being so open on this issue. As a fellow engineer, being able to learn from their mistakes and see exactly what they could have done ahead of time to avoid the disaster is priceless. Just goes to show that those with the time to spend are the most likely to break your stuff, even if you pay "professional white hat hackers" to test your system.
Avoid phpfog if at all possible, in my opinion.