The radio station handed out PAPERS TO SIGN (AND READ) telling the participants about the dangers of this competition.
I guess none of them read the instructions before signing.  It's their own fault.
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The radio station handing out a generic liability waiver is not the same as them handing out a paper that specifically tells you what the dangers could be.
The station employees were shocked that it could happen. Does this sound like a station that did any research whatsoever as to the dangers involved?
It's just my opinion, but I'm thinking they simply thought they'd have people drink until they couldn't hold it anymore, believing that the worst that could happen is someone pees their pants in the studio.
How ya doing, buddy?