Let's go to quanto_the_mad.com, all the information and discussion you need to learn about QTM. There on the home page of QTM is the announcement that QTM is in jail for an indefinite period for some malfeasance. There's a little one paragraph sound bite, a link to "Read the rest of this entry" and a smaller link indicating there are 2 comments. Suppose this was on the front page for three months, and when you first saw it you did indeed "read the rest...". What on earth would motivate you to click on either the read or comments links to find out that QTM was released from jail 3 weeks ago due to a case of mistaken identity. You really don't see how that can be embarrassing?
Not at all, why would it be embarrassing? The report of the arrest would be a factual account, verified by the police. Maybe it would be embarrassing to be arrested, but not to have a site reporting the fact. And that the site didn't update the information later- what site does? Unless they publish the wrong info, there's no reason to update or retract the info.