[croon]

I'm interpreting (disregarding possible narrator bias) OP as that the person who lost the claim bought a domain unrelated to their business other than it being the company name of a competitor, and redirected all traffic to their own company.

Are you interpreting it the same way as me? If so, yes the domain was indeed taken from the person squatting it (but actually worse than squatting, since it took you somewhere else than where you as a consumer wanted to go). And that's something I'm entirely ok with, and in fact applaud.