Yep. Even the details provided suggest that (i) the "wolf" explicitly asked for a level of support from upper management that wasn't offered and (ii) when others eventually became aware of the testing framework, they were able to improve it. Neither of the two details provided vindicate the author's self-congratulation on spotting the wolf and choosing to keep it quiet.
There are definitely times when the best thing for upper management to do is stay the hell out the way, but this doesn't sound like it was obviously one of them.