Razerglass effectively destroying his reputation for 0.04BTC. What a loser! Sorry for your loss shasan.
The fact that the price has increased dramatically since the loan was taken out may have contributed to the default. I know I took a fairly large loan around that time as well and had to pay two to three times as much (in fiat). Razerglass most likely did not consider any potential price increases and could not hedge the price... or they just had no means to repay the loan. Note the bitcoin price from April to May... quite a large jump.