Such a breech of ICANN rules could only happen when the Registrar requesting the transfer is part of the same Group of Companies as the Ignoring Registrar, hence the valid Conspiracy theory.
The co-operation of the “Support Departments” in both Registrars was needed to effectively block the transfer by failing to provide the correct level of support until such time as the Redemption period expired and the Registrars Go Daddy Group could sell the domains through their In House Auction System.