Yes, this seems like a clear case of bullying by FB and in turn by Kaggle. As a contestant I would be furious too. If I shared what data I am using during the contest and to other participants, and then I won then its completely fair. After the match, suddenly the Facebook legal team wakes up, they should have been awake during the whole contest. Ideally, they should give the prizes and then do another contest where the legal team is involved throughout