Yes it can still happen, if you buy paper bitcoin you accept the risk. If it's supposed to be "physical" bitcoin, you can check.

Wrapping has proved faithless, but presumably you took the risk for a reason.

This is what is different, with bitcoin you choose, with legacy finance, they made all the rules and all you get to do is follow them, while a few in power, like a Gensler, get to break them, "for the public good," of course.