Hire the intern. If they can weather that, they can weather anything. 
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This will end up being the best lead in for all future interviews. “Tell me something about yourself” “Well there was the time I emailed a few million people on accident”
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2nd worst thing that can be done. First is replying all on a corporate email.
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The intern just got HBO trending on Twitter. Sounds like they are the true winner herepic.twitter.com/7mPjLpFFKM
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So can we have an explanation of why or how this happened? What was the purpose of whatever they were attempting to do?
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An integration test is a normal part of software development. It just means testing multiple components of the system together. They probably run lots of those tests a day, this one just got messed up somehow. Not a big deal.
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i don't care if this happens to an intern i do care how a company responds when their intern does something like this so i do want to see this intern come out of this with a good story about how a company supported them through a mistake

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It said “we’re helping them through it.” Who knows if it’s genuine or not but billion dollar corporations love their cheap college students so they’re probably safe
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Hope the intern knows we're cheering for them, we've all been there :)
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even if its senior doing it, it should be OK and he / she should not be "punish" - nothing is down and mistake happen.
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