This is a serious hole though. Suppose I have figured out how to obtain working credentials for the Okta administrator at Big Corp. At 0815 on Friday morning I use those credentials, and as the administrator I tell Okta to synchronise passwords for Big Corp to https://steal-passwords.example/
As each Big Corp employee signs in with Okta that morning, Okta "correctly" sends over their password to https://steal-passwords.example/ for me.
How quickly do Big Corp figure out there's a problem? Once they realise that I have their Okta administrator's credentials, can they shut me out while they investigate or do they need Okta to help them? How easy is it for them to find out about my password stealing operation?
This reminds me of the situation with private keys for certificates in the Web PKI ("SSL certificates"). So long as you do this correctly you cannot get into trouble. But once you try to fudge things, maybe because it seems easier, and now a private key is (even briefly) in the possession of another party, it's game over for security. When you trust Okta to keep passwords safe, they can (and here do) fuck that up.
Does Okta offer a product where they can't make things worse? Note that a product where there's a config setting "Make things worse", even behind six "Are you really sure?" dialogs is worthless for this purpose, the actual product that your customer bought needs to irrevocably be better than nothing. My guess from this is maybe no.