This. I want to upvote this comment a hundred times. If there's a dispute with probable cause, temporarily freezing the domain while launching an immediate investigation seems by far the best balance of thwarting domain theft and minimizing fraudulent claims.
I'm not very familiar with their policies. Does that apply even in the case of theft? Didn't the article's author recover her domain within a few days?
It's no matter what you are only allowed to move domains once every 60 days. It is to prevent somebody from stealing a domain and moving it through 10 different registrars to wash the history of ownership.