They already answered this. Yes it is an exploit and it’s because the design of a lockout for dungeons and raids is in place. Using layering to circumvent those limitations is exploiting.
If the posts be real… Blizz is giving them a 30 day ban and removing all loot acquired from it. Sadly not sure they can track down all the transactions and remove the patterns, BoEs, materials, etc.that have flooded the market.