This story showed up on Gawker months ago, so I'm a bit confused why it reemerges now. http://gawker.com/tag/oceanavebooks/
I disagree with the writer's tagline that Yelp is such a new medium it can drive you nuts. The same could happen on other social networking services, discussion fora, AOL, etc. Yelp maybe could have done some diligence to connect dots between the biz owner and the negative review, but that could have been seen as special treatment of one business, out of the 1000's listed on its service.
I believe the biz owner is a bit unstable, and the ongoing media exposure just isn't doing her well.