Earlier quoted context omitted.
https://robindev.substack.com/p/cloudflare-took-down-our-web... - one of a number of citations. To find more insert the terms [Cloudflare, hostage] into your favorite search engine.
Whatever was really happening in that incident it seems clear that it was not a simple matter of having registered some domains with Cloudflare and then getting a shakedown for $100k+ because of that. If anyone else chooses to read the post then I suggest skimming the comments (that are mostly hidden by default) as well.
Maybe early/MVP product engineers should know better, but CFs own education materials do not teach you to expect that.