> I'd rather take the first option. At least my reputation will still be somewhat intact.
I'd take the same option, but for different reasons: the customer's data. Only pictures of e.g. a deceased wife, no backup, and you just deleted them. You can arm-wave all you like about backing up, but you deleted them.
Dude, I am already stressed when hitting big red buttons in production, and from now on I can imagine the possibility of erasing unrecoverable memories about lost loved ones... This profession is tough on the most unexpected levels.