The key thing here is how they deleted everything...
Delete the whole account (as in Business Account as an admin) or permanently delete data as owner/admin etc. then no, its lost.
Delete it as an individual user within an account and it can be recovered UNLESS they permanenetly delete things.
You can rollback accounts and data to a point in time (within the terms of your account restore period) as though the deletions never happened - with exceptions above.
BUT what I would strongly say is Dropbox is not, and should not, be classed as a back up system. It isnt. Its a synincg one. Dont rely on it to do the two jobs on its own. It does back up as a by product - and does it quite well, but, belt and braces approach means add in other things also.
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