Funny, but I actually mostly agree with you on this, with the exception of the one word. I don't think Martin released the VM to aggrandize himself so much as to explain himself. Here's a borderline depressed, suicidal drug addict kid who is really struggling at LT (no wonder?). Finally breaks down and walks out on the team. People say "What's the matter with you?", "Suck it up, you big wuss", "Walking out on your team - what's your problem?". He releases vm to try to explain his situation. All you-know-what breaks loose. Richie is collateral damage.
I actually feel for Richie in that I think his heart in all of this was mainly in the right place. But the fact is, if you live in a cesspool of drugs and girls and vulgarity and assaults and what-not, usually something is going to go very sideways. Because of that, I think the consequences for Martin and Incog and their careers are probably fair.