So...I don't know if this is his own fault, or just a dangerous side effect of the piece. Still, but idea of a bump potentially causing a problem is unfortunate.
https://www.youtube.com/watch?v=wvd-73clV6E
Basically it's a design issue. There is nothing that prevents the connector from moving from side to side which can cause pins on the dongle to contact the incorrect pins in the GC. If the dongle gets bumped and the incorrect pins come into contact, it can short out the GC. Supposedly, V3 of the HDMI dongle will fix this issue.
In other words, picture the way that the A/V cable plugs into the back of the SNES, N64 or GC. There is only one way the cable can be plugged in and once it's inserted, it can't move around except to be pulled back out. The original HDMI dongle didn't have this form factor which allowed it to move around. I'm assuming that the fix for V3 is to 3D print a new connector that should have the same form factor as the original plugs, and therefore, won't move if the system gets bumped.
It's unfortunate, but I believe with the proper fix, it's still something I might be interested in purchasing.