They've been doing this for years, it's hardly "automation gone wrong". They willfully abuse the DMCA system because they can't sell their puzzles to employers if interviewees publish their algorithms online.

Notice in the words of the CEO how he still doesn't think it's wrong to submit takedowns to code they don't hold any copyright over. At least he's honest about his bad intentions, so that's better than the drivel some tech companies come up with when they reach the front page of HN.

These guys are exactly what's wrong with copyright law and nobody has the time, interest, and resources to fight them.