There is so much high quality ‘open source’ code out there that yes, this is hyperbole. It’s like blaming the whole auto industry because one guy welds a coke bottle inside a door panel.
Except there’s the whole scope issue. This sabotage effects thousands of programs, possibly millions of users. And of course there’s the problem that open source critics have been pointing to basically this exact “what if” pretty much from day 1. It is a black eye for the industry.
You’re not quite clear of the definition of ‘hyperbole’, are you?