"DHS / Little Red Book" – why is Standard-Times protecting liar?

On Romenesko, Rogers Cadenhead asks why we've seen no apologies from the newspaper responsible for the erroneous story about a student claiming to have been interrogated by DHS agents over Mao's "Little Red Book."

At what point does a newspaper find sufficient cause to break a confidentiality agreement? The 22-year-old student knowingly lied to the newspaper and harmed its reputation across the entire planet.

Link to post, and here is previous coverage on Boing Boing.