The punishment here doesn't fit the crime. In this case the "crime" appears to be giving a false name to the escort service, having a loud party with alcohol, making insensitive racial comments, and asking some paid strippers to take off their clothes. The main crime seems to be making insensitive comments which lead to a whole series of wholly improbable but very real consequences for these young men.
I'm pretty sure that's going to turn out to be "making insensitive comments" in retort to a sexual slur.