If 1000 AWS boxes start hammering your API you might raise an eyebrow, but 1000 requests coming from residential ISPs around the world could be an organic surge in demand for your service.
Residential proxy services break this - which has been happening on some level for a long time, but the AI-training-set arms race has driven up demand and thus also supply.
It's quite easy to block all of AWS, for example, but it's less easy to figure out which residential IPs are part of a commercially-operated botnet.