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Bob,
I don't know the seller of the Flip site and I could see where it could be possible to not notice the enlarged hole. Maybe overlooked by both the Seller and those bidders.
But for that price...

On June 2-2019 this Flip sold for $204.50

Inland marked leaf WSI.
Short leaf had the peep hole drilled bigger...... If I'm seeing this correctly.
$204.50.... 13 bidders. Winning bid was minimum...