It's just so surprisingly tone deaf when things like this are done by companies that exist purely within the goodwill of their customers. Nothing that funko brings to the table has inherent value. If they have any world outlook other than to love their customers as much as they can, then they will fail in a time measured in quarters.
I'm pretty sure Funko used their service in good faith and didn't know it's based on over-aggressive AI bullshit. They're still on the hook for picking a bad company to partner with, but I don't think they intended to take down the entire domain.