Yeah, it would be wrong to do that, but even if they are selling their own domains....it doesn't send a great message for how their marketplace is superior or an asset to brandable domain holders if they are clearing out inventory on another marketplace via open auction.
Strategically, not a smart move for building confidence in their marketplace. And as a person who has paid to have multiple domains listed there and has had to remove those domains from several other marketplaces because of their policy, it's kind of a kick in the a$$
If they wanted to post some of their domains at the same fixed price they listed on their own marketplace, then that would be more understandable since you can say it's a matter of distribution channels, but open bid auctions is a form of wholesale liquidation in my opinion.
For example: if I owned a marketplace of Marijuana related domains and were charging you guys $10 dollars to list domains on my site because I claim I have a lot of end users frequenting it and have had some big ticket sales in the past, but you had to list it exclusively with me and no where else, and I charged a 30% sale commission and a $100 logo commission and then you see me listing my domains that I have on the marketplace at Flippa at open bid, wouldn't anyone feel sour that you're obligated to list with me exclusively and paid to do so, and here I am auctioning off my own domains on another site?
Maybe I just see things differently.
BTW...
What if someone wins one of their brandables and decides to sell it in the future. Will they be listing it on BB?
