It is bad indeed, but anyone who has been long enough in the cryptocurrency world should know by now if you do not own the private keys, you don't own the coins.
I usually keep around 5 percent of my stash on Bittrex and planning to reduce it to 2.5 percent in the coming days.
I agree with you there. I actually keep practically all of my stash offline, but it seems that newbies never know this which is a problem of course. I've talked to people who keep all of their funds on an exchange which baffles me!