It's not out of character. They did exactly the same thing for "Google Offers," the old Groupon competitor from a decade ago. They refunded ALL of the purchased deals, even the ones that had been redeemed.
12 years ago, Google offered to buy Groupon for $6 billion and Groupon declined. Those were the second and first dumbest business decisions I've ever heard of, respectively.
IPOed at $522.20, now down to $8.76. Took $1.4b in investment, now worth $265m.