Sounds like the league op for that Taiwan league is either dishonest or inexperienced at rating players.
I know where I play there is a player on the ratings comity who wont let players of known ability slip into a lower division even for regional tourneys.Every regional event there is some "known" player who thinks he can play in the open B because he has never gone to a BCA event.At regionals the open divisions are much larger then the masters because people want to play in the easiest division that they are allowed to.So many people playing in the lowest possible division can actually make that bracket harder to win then a higher bracket.
LO's rate their players on their ability of play and compare that to other individuals within their group. I have seen people rated as a 7 or the highest level that that area has...(because he beat everyone in his/her area) only to arrive at the final tournament and get beat very easily by a similar rated player from a different division. This especially occurs in rural areas instead of cities.
I know you are wrong in your assumption that they were dishonest or inexperienced.