Your direct manager has done something stupid that caused a significant blow to the company you work for. Only you know the culprit, i.e. your manager.
Do you feel morally obligated to inform the top brass/the board of directors?
Or do you intend to take advantage of the situation and tell the manager to get off your back whenever you slack?
Or do you just ignore the whole thing and get on with your life? Or maybe do some other interesting thing?!