The problem is Honey was dishonest about how it works.
Their marketing claimed that Honey automatically applied coupon codes for various online retailers during the checkout phase. Nobody really had a problem with this.
What got found out and landed Honey in hot water, is the affiliate link hijacking behavior which they did not disclose. Basically, any time you follow an affiliate link with Honey installed, it replaces the original affiliate code with their own. Leading to this flow:
1. YouTuber takes Honey Sponsorship and their followers install Honey.
2. YouTuber posts new content, with affiliate links for equipment or parts.
3. YouTuber sees their affiliate links aren't getting near the amount of traffic they used to despite their videos performing just as well as before.