Regardless of exactly how the Coinbase transaction was initiated and cancelled, the OP's issue is with US regulation, not Coinbase's business practices.

Money services businesses have to obey aggressive KYC and AML processes or face the possibility of huge fines or getting shut down. And the rules are pretty gray, leaving regulators plenty of leeway to interpret. Thus, a high-profile business with VC investment like Coinbase is going to be aggressive about identifying "high-risk" accounts so that they can show regulators they're acting in good faith, and that there's no basis for a regulator to say they were being intentionally slack. They are going to generate a lot of false-positives, and it really sucks to be one.

But that's where they're coming from: keeping regulators off their back; not scamming you for $1000. So lobby for changing the very onerous KYC/AML/BSA legislation instead of ranting on the company that's forced to obey such regs.