If there's anything to believe in the story, it's the part that John Lloyd and Shaina had some sexytime. What's new about that. right? I'll totally do Shaina if I get a chance and it so happened that John Lloyd has that exclusive rights to her now. So I wouldn't be surprised if they're 'doing it'.
As for the supposed Penis Captivus, it's a hoax. I remember there's a similar story in a town in Mindoro more than a decade ago. It involved a man's member got stuck in the G.R.O's vagina and then both died. I just can't remember how it was called but something like 'na-pawikan'. I didn't believe it then and that doesn't change even now. It actually turned out that the two were actually murdered. But the story of 'pawikan' is the one the stayed in the minds of the townsfolk because that's more interesting and scandalous than the fact that two people releasing their sexual tryst were killed.
In short, it's a HOAX! And as the saying goes, "NO PICTURE/VIDEO AND IT DIDN'T HAPPEN"