Jonathan,
Thankfully both you and your car are okay, but definitely do yourself a favor and don't drive it until this issue is resolved.
It sounds like your MC bypassed fluid...rapidly. Usually, as a MC goes bad, it's something that starts out mild and inconsistent and then steadily gets worse, but that doesn't necessarily have to be the case. Most of the other things that could cause the pedal to drop like that wouldn't recover until they had been fixed and/or replaced. The fact that they've been working great for 1700 miles would tend to indicate that it's not an air bubble, as any trapped air would have given a soft, spongy pedal since day one.
Does the pedal slowly sink any with your foot on the brake for 20-30 seconds applying moderately heavy pressure? I would suggest contacting Wilwood about this since I think there's a new MC in your future, or at least a rebuild kit. I would want to pull the existing piston assembly from the MC you have and take a look at the seals and the bore...without finding a "smoking gun" for the problem, I'd be nervous too.
Tobin
KORE3
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