If it wasn't an automated system, they would have the cost of someone going through everything.

Do you really doubt that this is constantly happening and people are paying? Just look at the people who get DMCA'd for content they made themselves. Same system, just instead of paying a fee they lose their youtube/Twitch.

This was spurious entirely. They claimed ownership of an asset that wasn't theirs based on a composite asset they didn't own. They literally did no checking on whether or not they owned the original resource. The fact of the matter is this was an automated shakedown in one of the most corrupt industries in America. Automated copyright and patent abuse claims are literally sucking money out of the productive engine of the country and the whole industry needs to be sued out of existence and people who do it need to end up in jail for long sentences as a warning to other jerks that might try it.