I can find no mention of this virus on CNN.com, or Mcafee. Nor on any other news network (at least, not yet). Certainly no news of "panic in New York".
It is impossible for software to physically damage hardware, except in very old hard drives.
Also, it is impossible for software to intercept a physical reset.
And I doubt Microsoft and McAfee would so quickly dub a virus "the most destructive ever". It sounds like a wind-up to me.
I have been known to be wrong before though, and I know you are reliable, Helidrvr. But maybe you have a bad source?