This seems a little hard to believe even with some supposed PMs as evidence. I'm a software engineer myself and build sites like CPW's for a living. I want to be clear that I'm not saying it's impossible, but we've yet to see any solid evidence to that end. What I would add is the possibility that it's more likely to be a scam. When you say "not illegal as I understand" I think you mean there doesn't appear to be a rule against it in the hunting regs. But it can absolutely be considered illegal under other statutes that cover fraudulent statements and activities.
What hunter is going to come out and say "yeah, this guy scammed me out of $200 to get me a tag"? It's a perfect con. And posts like you may have run into feed into the scam so there's no reason for the posters to take them down, either.
Fair queueing systems are extremely challenging to write, and surge behaviors like this type of sale are the worst. Some of y'all may remember in the past seeing "waiting room" indicators on the site, and while frustrating, it was at least better than the 5,000-people-at-once mad rush through the late 2000's. I really wish they would drop this "fight the others at Walmart for the last TV" nonsense and just keep re-running draws that you can apply for ahead of time. They're very fair AND very easy to code for. But what do I know? I've only been doing this for 35 years. Maybe I missed a trick.