I don't think it's bad business, i think UNDFTD just mishandled this release. If they didn't want international orders then they shouldn't have allowed the orders to be placed in the first place. Would've saved them a ton of time and hassle sorting out the US from the non-US, issuing cancellations, refunds, restocking and all that nonsense.
I think once they have that part settled, then processing and shipping out orders becomes a lot more straightforward. I would hope they'd learn from this and improve come their next release.
That being said, they should at least be a little more vocal and give their customers updates and respond to emails. I know we live in a world where we need information lightning-quick and people should learn to wait smh
etc, but if they were to give regular updates like RISE NY did on their Saucony collab, i'm sure there'd be a lot less angst on the interwebz.