Judging by the over-the-top reactions to this whole issue (by people who probably did not even know the deceased) perhaps it is time to retire or change this tradition like they did with the Roma Robe (although now it sounds like some sort of Masonic ritual).
It isn't any great mystery. A 19 year old female dancer filed suit against her boyfriend for filming her and sharing pics and vids with other males in the company. I am assuming that the friends included this particular dancer and at least one other who are now out the door. Under threat of more litigation, they are trying to clean house.