Yeah I read this article on another post, I'm not sure that's the whole story.

From what I remember, he was running a few "shops". These don't actually sell games, but they can be accessed by a piece of homebrew software on the switch, and then you connect to the "shop" to download games directly to the device - this was done instead of manually copying install files to the SD card, installing, and then deleting the original files to save space; or instead of installing over USB. The shops were much easier, not least because removing the SD card to copy games from a PC required a reboot, and rebooting an OG hacked Switch could be kind of a pain.

I think the "sales" he did were actually just donations that got you early access to titles that weren't widely available yet. However, it's generally when you start taking money for these things that the shit hits the fan and the hammer comes down.