I was hit with this, as one of my VPS’s was hosted with an affected provider. Low cost providers get hit with all kinds of problems - they go out of business, they get hacked, they suffer from reliability issues and so on. I would say that the usual rules of thumb apply - if the price looks too good to be true, it probably is (USD$30 for a full-featured VPS for a year, for example.) Big names are more likely to last longer, although of course there are no absolute guarantees.
For my particular application, the fact that this VPS provider went down wasn’t that much of an issue. I have a full backup of the VPS and there are three VPS’s, all low-cost, all with different providers, doing basically the same thing, so I just switched over to the others and decommissioned the affected system, and in this case I had notice, which made things more straight-forward. I changed some DNS records and tidied up configuration files on the other systems and all was well. But if I had a serious application to protect then there’s no way I’d host it on an ultra low-low-price special-deal VPS. It would end up on Amazon, Microsoft, or some other player that’s been around for a while like Linode (since 2003). If you really want something long-term at a low price, reserved instance pricing on Amazon for 3 years will bring the VPS down to a similar price point to the low-end providers anyway.