Sounds like this system is in place to prevent people who abuse Amazon's lenient refund and return policy from costing them thousands of dollars. In this particular case, it seems that several subsequent order problems in a short time period triggered the alert. I'd hope that once someone looked at the account in detail, they'd quickly realize what happened and remove the flag on the account, but OP doesn't actually explain what happened after this.

I get that a lot of people are on the anti-Amazon karma train today, but I'm not seeing anything particularly objectionable here.