The mistake was in creating something planet-scale before having anti-abuse systems in place. In this regard, Amazon is very much not alone.
Its not the best example but even our country/state/local level justice system has cases where it fails. In addition to judges actually making incorrect verdicts, there are many ills that cause this - eg. Police not following procedures, poor people not having the money to right wrongs by appealing decisions, being bullied or scared into pleas etc.
That does not mean we should not have a justice system at all. Just like us, the systems we build are not perfect. That does not mean they should not exist. There is immense value in the valley between non existent and perfect.
I mean seriously, in the past several years we've learned that "at scale" is actually a public hazard.