Never had it happen to us on Virgin. I didn't think it was a thing in this country. We once had a Virgin flight delayed by the length of a movie plus another wait in the terminal and they gave us 10,000 points for the trouble.
First time I've heard of it happening, too. I was wondering if I'd been insulated from it because I probably do 90% of my domestic travel on Qantas and I'm gold status with them, but from a Facebook comment by a friend who's a Rex pilot it sounds like it's rare across the board. I'll be interested to find out what actually happened (assuming I (a) get round to writing a give-me-a-good-explanation-if-you-want-me-to-fly-with-you-again letter and (b) someone answers it).