Yes and no. I see your point on one hand. Hackers mint 120k wETH. Bridge guarantees 1 wETH = 1 ETH. Therefore, hacker transfers 120k ETH to their Ethereum account. They can then sell this for approximately $320 M not to Wormhole or Jump Trading, but to the market who will collectively pay $320 M hypothetically (of course, slippage is a thing).

But, on the other hand, since Jump restored 120k wETH (valued at $320 M), they kind of are “out” that money in the sense that they would not have spent that without the hack. They are now forced into an “investment” of 120k wETH. They may profit from their investment if the price of the asset rises, but they may also lose some of their investment if the price decreases. Likely, it won’t fall to 0 so they are not “out” $320 M in the sense that the hackers directly stole that, but they essentially forced to trade $320 M for 120k wETH.

I don’t see how the public is screwed here. There is no “inflation.” They essentially increased the backing assets of the bridge by 120k wETH at current ETH market price.