Reading the extended FAQ on badges I recognize the rules for losing badges. There are two of them and both are completely justified.
But, considering, that this is about Tech and Coding and Wizz, shouldn't there be a badge for "Cheating". This badge should be awarded if someone cheated the site (reputation/badge/vote system) in a creative, successful and funny way. For example someone receives the Populist-badge without having outscored another answer. Obviously he loses this badge, either if caught or because he turned himself in. Especially in the latter case he could also have the badge "Cheater" assigned in return. (Generally as a cheating case will always need human intervention, this badge is not automatically assigned.)
A Cheater-badge probably should be a gold badge because the cheater beat stackoverflow and not some fool's homepage.
Well, actually the badge should only be awarded if the cheater turns himself in, reveals the cheating technique and generally helps to improve the site.