Unless Loial has proof that he attempted to crash the server then I would treat this as an idle threat. Much like when Dagless says 'Reed, I hate you so much. I swear I'm going to hurt you.'
Even so, most admins have patched up there servers by now, so there should be no real threat. However, nobody should try and exec this command regardless of whether the server is patched up or not, if you do you can be caught and you will be punished.