What would happen to award flights booked with OS (European segments) if this were to happen? I see many connects from BUD and VIE using OS, some that I am considering right now.

If I understand correctly, the carriers are not paid until the flight is taken, so if OS dropped out of *, would they honor the reservations, and still get paid, or would there be some massive rebookings going on? (with C seats possibly booked solid on other carriers)

Are there any precedents for something like this, or any regulations?