The flag in question was auctioned by the Sqn Cdr for the benefit of the disbanding squadron members present some 30 years ago. What the winner later did with the flag was something for his own conscience, I guess.....
Failing to secure a nation's flag at such a high profile event as the award of Olympic medals was a significant cock-up. The two events are not comparable.
The engagement of the IX Sqn Tornado was avoidable - as was the netting of a Tornado in Gulf War 1 by a Saudi ATC controller, who raised the wrong barrier at night - and political sensitivities meant that this wasn't actually mentioned in the Accident Report....