Rather than fix the problem in a way that makes sense, bit.ly has gone ahead and changed the wording of their page.
The top banner now says "Stop - there might be a problem with the requested link" rather than "WARNING - visiting this website may harm your computer"
It now identifies reshortened links as such, but goes on to state
* Some URL-shorteners re-use their links, so bit.ly can't guarantee the validity of this link.
* Some URL-shorteners allow their links to be edited, so bit.ly can't tell where this link will lead you.
* Spam and malware is very often propagated by exploiting these loopholes, neither of which bit.ly allows for.
The link you requested may contain inappropriate content, or even spam or malicious code that could be downloaded to your computer without your consent, or may be a forgery or imitation of another website, designed to trick users into sharing personal or financial information.
Better than it was, but still not acceptable, as far as I am concerned. If they can detect that a URL comes from a shortener at the time someone clicks, they can do it at the time it is shortened and just not allow it.
old:Bit.ly is Harmful to Your Reputation
new:Bit.ly is Harmful to Your Reputation