While Snapchat itself wasn’t hacked, the peek-a-boo photo and video sharing site says customers using third-party app have allowed an estimated 200M nude photos to live on into eternity online. A hacker wishing to expose the security vulnerabilities of snapchat is succeeding in its wakeup call. Will investors flee? And would the reported $3B offer from Facebook ever materialize with a list of embarrassing security setback for the popular photo sharing app.

Kurt ‘The CyberGuy’ Knutsson and FBN’s Charlie Gasparino on reported Snapchat photos hack and the company’s valuation.