potted version:

Merchant A accused Merchant B of stealing images off them. When Merchant B provided all the evidence they were asked for and Merchant A did nothing to back up their claims, Merchant A then accused Merchant C & D (and maybe E) of stealing images off them. When Merchants C, D (and maybe E) provided signed paperwork that the images belonged to them, Merchant A imploded and withdrew, issuing a false apology and maintaining they were right all along. Drawn into this drama were several sites and forums, one of which suffered a lot of damage to it's reputation.

I think that covers it and stays in the TOS ;)