No. They lost a battle, but the war is far from over they because they will rebound stronger than ever with the MC as their defacto leader who will lead them down a better path than what they were on before with Tommy and his "bull in a china shop" way of running things.
Who says they have to respond with violence or vandalism? That would be Tommy's answer, but I feel like if the MC now has a greater say in things, they would respond with something a little more clever and that gives them more of a high ground, or simply not respond in a direct way and just one-up them at every opportunity to prove their dominance.
We don't know which way the axe will fall for Rusty, but I have a feeling things may turn out alright for him because of not only what the MC said to Cathy to calm her down, but they may also take into account the vandalism done to the DIK mansion and that losing their president at this time would just be adding to their troubles, so he'll get off with a warning.
As for the HOTs, they're not going to go back to partying with the alphas, or are going to party with anyone else for that matter. They're surely guaranteed to stay sided with the DIKs and will probably offer to help them fix up the mansion since they each, at some level, seem to feel bad about not being at their Hell Week and letting them down. So long as the MC vouches for them and makes it clear that they had no choice, I'm sure the DIKs would accept their support and they'd go back to being on good terms.
I think the DIK reputation will still be intact after this. People will know their house got vandalised and I don't think people would insult them like that.
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