The mamewah.ini file being trashed is likely a side-effect of poor programming and keeping the file open during operation of the program. If it improperly terminated, the file could easily be corrupted.
I ran into some similarly scary situations test-running MameWah with a WG 7000-series and AVGA. I am running three different FEs: Mame32, ArcadeOS and MameWah, and both Mame32 and AOS run fine but on a regular basis, using MameWah throws the monitor in some weird mode that blacks everything out. I posted something about this earlier and got no responses... It doesn't surprise me a bit that your monitor got crapped out, however, I am not so unwilling to leave MameWah blameless, even though I agree anyone who fools with any of this software basically assumes all the risks they take, which may include the use of less-than-ideally-designed utilities that might be destructive.
I posted a message yesterday trying to get to the bottom of where the config files are exactly for mame and the FEs that say what modes are available and which ones to use (both for current and earlier versions). I'm still trying to figure this info out so I can check the settings prior to testing the software and having it go into some destructive video mode.
For example, I think MAME.DAT has some info relevant to these issues, but I can't get docs or info on it, but I configured MameWah to use the same MAME.DAT that ArcadeOS uses, but they behave a lot differently.