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"Because of this Cloudflare’s 1.1.1.1 DNS resolver could no longer respond to queries asking for the IP address of facebook.com or instagram.com."

The instagram.com zone itself uses a third-party DNS service and didn't go down. (But e.g. www.instagram.com is a CNAME to a zone on FB DNS.)

That’s pretty much why during the downtime visit instagram.com showed a 503 from AWS instead.

Wonder why they're still using AWS given that FB operates its own data centers...

No idea. I'd speculate that it's some kind of historical reasons from before FB acquired IG.

Could be that nobody thought to ask. If it was an oversight that'll be rectified shortly, now that everyone in the company knows about it.

probably a testimony to the cost of aws lock-in

Thanks. I'll correct that.