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I don't think it is a big deal because I don't believe the girl was in the sorority, but as an alumnus of USC let me spell out why it is such a PR disaster.
The sorority in question is one of the three houses whose philanthropy event is unanimously loved by the fraternity community, and of the three it is arguably the most famous. All three take place during the day in a very public area of the campus, involve competition of some sort and raise absurdly large amounts of money. All three are officially "no alcohol allowed" events, and those in charge (exec board, advisers, president, event chair, etc) make it very clear that nobody should be drinking.
However, each fraternity gets assigned a group of captains from the sorority, and usually these captains are close friends, girlfriends, etc. These captains are in charge of making sure the membership goes to the event, donates money and has fun, and it is not uncommon at all for them to get a ton of alcohol and come over early in the morning to get the fraternity brothers drunk before going to philanthropy. Not surprisingly, some of these captains also get very drunk.
So the pictures, in which the fraternity member is wearing the philanthropy t-shirt, ignited a firestorm of criticism because the implication was that the girl was so blackout drunk during her PHILANTHROPY event that she agreed to have very, very public sex. In reality, the girl is not in the sorority, she is not wearing the t-shirt that every other member was wearing at the time and nobody has been able to identify her from a limited pool of (frankly, very high profile) students in the last 5 days, while the guy was identified within minutes. But this is a sorority that many would want to do poorly because they are arguably considered the "best" sorority on campus in several different ways (reputation, recruitment, philanthropy events, physical house, grades are always at least top 2 or 3, if not flat out #1).
So to sum it up: public sex is kinky but whatever. Drunken public sex during the philanthropy event of one of the most admired houses on campus is what is causing the controversy, on campus at least.
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