Imo we need to start attaching criminal penalties to the people behind businesses that knowingly abuse their power and position like this. Corporate bullying isn't a financial position, it's a failing of ethics.
Takedown requests being spammed everywhere is sort of standard, what's crazy is that their domain holder immediately honored the request, completely ignoring how massive itch io is with millions of users...
Honestly, there needs to be a fixed penalty fine for bad takedowns...
Absolutely not, fixed fines become expected costs, and immensely favor monied actors. Make it percentage based so it hurts equally, and rich people actually have to pay a measurable amount.
The DMCA doesn't make false requests legal (I'm also not sure if this specific issue falls under the DMCA), but it does fail to define any meaningful penalty for making them.
Probably both if you can make the case for it. Funko for the false request, the registrar for not doing their due diligence in honoring it. Depending on the wording of the law the registrar may be off the hook however, so whether there's a case to be brought there would be a question for their lawyers.