Pretty egregious, and something which one would hope you could sue Google for. In this case aiding in the infringement of Copyright because it is the Content ID system, with a borked refusal policy, that are allowing UMG to pirate the artist's music and to make a profit from it. Not only from the artist but anyone who was paying license fees to the artist are now having their video revenue get hijacked by UMG.
Seems like class action status might be possible.