Maybe. People could certainly sue the company, but, the company has no money. If the company lost the lawsuit, it might bankrupt the company. I doubt any penny stock shareholder would risk that.
And, if the company goes bankrupt, the Z shareholders (Benny and Markiplier) are first in line to be reimbursed. They could take all the company assets and just start over.
Benny could always put it up to a vote, with him abstaining.
Edit
And a 10 to one reverse split isn't too bad for anyone. If this were a better company, I would have said 1000 to 1.
