The problem is that the news sources that Wp trusts have gone completely bananas over the past decade.
Precisely, it lost its trusted status, but the GP posts that WP trusts publications that have gone bananas. So your example speaks in favor of Wikipedia's reliability.
Please provide an appropriate citation.
Though I don't see that specific criteria listed:
https://en.wikipedia.org/wiki/Wikipedia:List_of_guidelines
FWIW, here's Wikipedia's roundup of sources:
https://en.wikipedia.org/wiki/Wikipedia:Reliable_sources/Per...