Amazon's security theater destroys password security

Oh wow, I never expected such a fatal security flaw from Amazon: I just logged in to my account with email and password. They emailed me a one-time code because it was a new device. Afterwards, I could see my shipping addresses, billing data, etc. as usual and submit the order.

Then I got an automated email: "Someone unauthorized might have access to your account. To protect your security, we have disabled your password. Please use the following link to reset your password."

And now I can click the link and they'll email me an OTP code which I can use to login into the account WITHOUT ANY PASSWORD !!!