"Online Buddies did not respond to repeated requests for an explanation"
That's because they're trying to find an alternative to "we never thought that anyone would try that".
So let me see if I get how this app works :
1) you make the mistake of installing it
2) you peruse the profiles and find someone of interest to you
3) at some point, you take a pic and send it to him
4) somehow, the online database of images records your pic, but has zero security on it
5) somehow, the manager of the company saw no problem with that issue at development time
6) somehow, the developer of the database found absolutely no way to link profiles to an image and prevent anyone else from seeing it, and couldn't be arsed enough to pull the fire alarm on this
I get that this app is being used by the alternately sexed and I believe that there may be one hell of a market for that. After all, it seems pretty obvious that those apps will have guys on them, since the Ashley Madison kerfluffle demonstrated that it was mostly guys on sites where women were supposed to be present and searching.
It does seem that this app is nothing but a cash grab to try and benefit from this market, which is disgusting because it's not like homosexuals don't have other important daily problems to worry about.