I'm not surprised at all. Etsy used to be user based and hand made. Now it's just another market place. They still act like they try to enforce "non-mass-produced" but there are countless examples of the opposite being true. Places where people have directly reported instances of this and the problem is still present.
I think the problem is that they stopped caring about their user base and, therefore, became less ubiquitous and people saw that and were like "oh.. time to value them lower.."
I think the problem is that they stopped caring about their user base and, therefore, became less ubiquitous and people saw that and were like "oh.. time to value them lower.."