Yikes, that sucks!
My issue with my co-op was for one, they didn't seem prepared for such a large order and didn't have enough hanks of the weight that everyone wanted.
The other issue was that the colors vary A LOT sometimes ("ugly" was suppose to look a lot different). You really never know what you are going to get. That being said, I was refunded for the mistakes they made. This brought the price of the yarn under $5 a hank each (that's including shipping and such).
Thanks for the heads up on that website too! This is a good idea! If anyone has bad/good experiences with yarn stores, post about it!