Well, "pricing signals" skewing markets is what is supposed to happen, that's also how a healthy market works. As a counterexample, opacity in the labor market has long allowed employers to underpay, because most of their labor force don't realize what the pushy few who demand a raise are getting. I have also been able to get a better price on cars (not this year, but in normal car markets) by making it obvious to the dealer that I was looking at the Kelly Blue Book, so that they didn't think I would be willing to pay more than that. Removing price signals typically provides more power to the larger party, that does more transactions in that market, and thus has a large advantage in knowledge of price.
The issue here wasn't that Opendoor had pricing signals, but rather that they were lying about what those market prices were.
> “pricing signals" skewing markets is what is supposed to happen
Only if the signals are accurate. Zillow calculates value based on comps in the same zip code since the range of properties in a zip code can vary tremendously. This is ridiculous in many zip codes. Ask any realtor what they think of “Zestimates”. You’ll get an earful.
Oh, I'm sure it's flawed. However, their AI-generated prices did tell them to get out of the market, and despite their stated reasons at the time it looks like they decided to leave the home-buying business suspiciously close to the top.
The issue here wasn't that Opendoor had pricing signals, but rather that they were lying about what those market prices were.