> I think a event like a major exchange being raided would cause a mass selling panic.

I agree. I just don't think it would kill bitcoin. Because killing one exchange would just make others more popular. That's what happened when most popular bitcoin exchange in my country lost their wallet. :-)

World consists of many countries with many laws. I just don't see all of them cooperating in killing bitcoin.

Besides how well megaupload raid worked for Hollywood people?