A big reason Etsy has lost a lot of trust with consumers is their inconsistently applied policies and their allowance of cheap knock off crap. When I was there a few years ago, there were all sorts of forum posts, reddit posts and tweets about the problem all the time. The leadership (and more importantly) the people in the company, absolutely refused to believe it was a problem. We came up with any excuse and rationalization we could for not addressing it. The most common one was, "they (the people complaining) don't have access to our data, they don't know what we know, therefore their points are irrelevant." Another was, "they're just mad, let them vent, it's no big deal." Pure denial, the simplest reaction to bad news.
By continuously shoving their heads in the sand and not addressing the perception (whether it was real or not) the company allowed the perception to become reality. I'd be pretty surprised if reddit leadership doesn't do the same thing when they see messages on HN talking about how shit reddit is. They'll rationalize how we're a bunch of pedantic, angry nerds who don't represent the average user. They'll ignore the growing negative trends in favor of looking at the positive ones. They'll do anything they can to not change the strategy they've committed to. It smacks of a company that doesn't plan, doesn't think about the consequences of their decisions, and goes with the first idea that pops into their head.