I've only graded about 10 games with WATA, and I've had good experiences mostly, except for a reholder when their old blisters sucked.
That being said, if I were grading something for the first time, something like this would send me elsewhere.
I don't know when this game was graded, and I realize that shouldn't matter, but with all the retooling WATA has done over the last few years, I feel like it does.
Ultimately, if you screw up as a company, you should always own your shit, and it shouldn't take people calling you out to do so.