While the registrar should have made more to understand the situation before acting, it's important to keep in mind that according to itch.io, the request was not a DMCA takedown but an accusation of "fraud and fishing". There's probably a very large legal exposure for a registrar to let criminal website use their service if they are made aware of it, so reducing their liability is probably their highest priority.

BrandShield is inexcusable for using such a claim as a first step.