They must've forgot the aqueous coating, perhaps?
usually that will protect the inks so you can cut and bind stuff without smearing or ink transfer.
I imagine thats what the pages look like, lots of transfer and smearing from where the bindery machines grabbed them. This is something that should've been caught WAY early on in the process. during cutting, they shouldn't have ever been shipped. As a designer, this is the single most horrible thing that can happen to you. Getting a big box of product and finding its all messed up. I feel for you all! No fun! Glad to see the company step up and pay for the reprint.