This is disgraceful.
Does anyone know how much it sold for?
I am going to email the buyer and advise them that if they made the purchase thinking the domain name was kids then they can demand a refund and any costs involved under Section 52 of the Trade Practices Act.
auDA seems to focus on smacking the little guys and protecting the big guys but this one, being a clear breach of the TPA, is out of their hands.