While it's the player's fault that he lost 1.2K dollars in 1 click, MA is also to blame for devising such a system that allows a player to do so, with such ease.
It's not as if one can do this by accident... have a look at the confirmation screen the OP clicks past right at the start of the video - the one that warns you that you could lose the second item. It's there for a reason.
This is like people who build houses below the floodline, then complain that the "government should do something" when their houses are washed away. If you ignore the warning, it is entirely your own fault.
It's clear that MA wants players to lose items in this way, otherwise they would of made it fool proof by implanting a system that doesn't allow a player to upgrade if he's not skilled enough to do so.
The tier system should rely on consuming resources only, not items. Perhaps introduce items like "ML-35 Upgrade Part" for the secondary item...
They should also put in a system that prevents players from killing "no loot" mobs.
As for the secondary item... Marco has already indicated that an "upgrade replicator" will become available. Don't blame MA for a player being too impatient to wait for (a) better skill levels, and (b) an upgrade replicator.
This is far too risky and considering there are 10 tiers so far - it's foolish to implement a system where no one will ever reach tier 10 for the higher-end guns. Even to tier 2... it's too risky, for too little of a reward.
Perfect design for a system aimed at the middle to lower end of the market, where the risk will not outweigh the benefit as badly.
This gun will probably be lost forever, but MA should really remove the tier system as is for now, and introduce it back when they have solved this problem.
It's not a bug, it's a feature.
It would be ok if we were playing a monopoly cash MMO, but we are talking about real cash here. On a system that as far as we know, could be rigged to make you fail and lose thousands if you are mad enough to try.
If you're mad enough to try, the system doesn't have to be rigged for you to lose, your madness will guarantee it.
As you so aptly put it - "we're talking about real cash here". One would think that would make for a more cautious approach.
I'm sorry, but I really cannot fault MA/FPC for this.... the system has PERFORMED EXACTLY AS DESCRIBED, WITH CLEAR WARNING ABOUT THE RISK.
They have not compelled anyone to take that risk, at any level. That was purely player decision.