Why not implement something like detecting voltage drop between charger and device? Short circuit detection, etc. You can do a lot if you can have both sides communicate with each other, and at that point it matters a whole lot less if your cable lies to you plus you catch a lot of other failure conditions.
The OTG device is required to limit the current it draws from the ACA such that VBUS_OTG remains above Vaca_opr min.
Not a USB engineer, but a quick peek at the BC 1.2 spec suggests the ball would have to be dropped on at least two additional fronts for the suggested failure mode to occur:
1.) The Charging Port device vendor for failing to implement any of the allowed shutdown measures suggested in BC1.2 §4.1.4; and
2.) the Downstream Port device vendor for failing to constrain current draw based on sensed Vaca_opr min = 4.1V (Table V) per ibid. §§6.2.2 and 6.3.1.
I can see how the knock-off cable would be toast, and depending on insulation rating, may potentially catch fire, but struggle to see how either the CP or DP USB-C ports would fry (considering they're both designed for a target power).
One of the primary drivers for this is the power delivery - imagine a scenario where you have authentic power brick and laptop and buy a counterfeit USB-PD cable, power brick sends 100W over it and it results in the cable melting since it was really a $5 knock-off and you end up with a fried USB-C port in your laptop and possibly a fire. I'm sure most people would wish that the power-brick/laptop checked that cable is genuine and build to handle the power.