Dont he check his product before trying to vend the product ?
I mean fuk,its a simple task to look at the bud under a scope,mold & mildew show up clearly at the same magnification as the thichomes do.
Mold or mildew is easily seen next to the trichomes if the bud is infested,check your buds before vending next time,the club i use bans vendors who bring contaminated buds in to vend,no 2nd chances.
To answer your question yes,you most likely lost the crop,smoking a jibber or 2 from mildew bud wont f up most healthy people but smoking alot of tainted bud will make a healthy person sick,one joint smoked by the right sick person could knock them down & out,my wife would die if she used mildew bud.