Process of "uploading bad code" is not simple, you should do at least code review, manual test and at least some people should care about it, so if you failed at the end, than you failed as a team, all those people who should spend their time in that process and who didn't find anything bad, are responsible together and not just only one person.
After all, like it or not, it is always top level managers mistake because they, their processes, their work or absence of their work allowed it to happen.
Finally, it is absolutely ok to fail. Everyone does mistakes. Business is about making and loosing money all the time. However, if you never do analysis, preventive actions, improve your process and security, then something is really wrong.
How manager should react in such situation depends only on situation itself. Usually some report (why it happened, what can we do to prevent it) and restoring as much damage as possible (for example, moving to a backup or rollback to previous version) is all what manager needs, however, of course, company may just fire a person which is also absolutely a normal situation and in some cases it is even possible to legally get at least part of the money lost back from that person. Professional understands risks more than managers and always takes all the responsibility.