You can use Amazon for fulfillment without participating in commingled inventory. In that case, Amazon would still have possession of your inventory, and if you didn’t cooperate when they tried to return it to you, it might end up getting destroyed.
If Amazon didn’t offer fulfillment as a service, and just bought product from suppliers to sell, this same issue can arise - the supplier can deliver items which seem possibly fraudulent. Then Amazon will fight with the supplier about returning those items and depending on what kind of contracts are in place, could end up destroying them (this seems to be essentially what happened here).