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Ignoring this news for a moment, what's the worst that could happen to my 401k? (Not asking rhetorically). If I invest $1, could I not get that $1 back?

Does this development change the list of possible outcomes or the likelihood of outcomes?

If I invest $1, could I not get that $1 back?

Of course. You buy a very risky "investment" using your 401K, that investment goes bust, and you get back...zero divided by zero...carry the zero...you get back zero dollars from your initial investment of $1.