i think you mean bitcoinexchange.com.
not sure if this is really a market or an exchange service with fixed rates.
I think BitCoinExchange has set rates by the manager of the site, but they do change. BitCoinMarket is a market with the rates based on what other people are willing to trade at.
That sounds like something that can encourage a lot of arbitrage, most likely at the expense of bitcoin exchange if he gets it running again.
I don't think he has all that much at risk, but it seems like with the presence of a floating market he's going to lose it all at some point unless he also becomes a floating market.