What actually happened was we started to get reports from customers that we were serving content from unrelated sites under their domains. Wasn’t happening a lot but for a reverse proxy that’s terrifying and about as bad as it can get. And what made it even weirder was that the domain fronting was connecting to other proxy servers outside Cloudflare and so we literally had situation where a Cloudflare customer's website suddenly served up google.com (not a customer).
The issue was domain fronting where SNI didn’t match Host causing us to handle the traffic incorrectly sometimes (infrequently but not zero). Since standard use of the Internet doesn’t need SNI and Host to not match we blocked the use of domain fronting very fast to ensure the integrity of our service. Lantern was domain fronting tickling this bug and causing our customers trouble.
Hence we dropped domain fronting.
I remember this well because I actually debugged it myself and reported the problem in Jira. You weren’t involved and inventing a story about “China” is dead wrong.