Baen knows about it. It's been discussed on Baen's Bar. There were no official comments made in the discussion. I think they could stop it fairly easily if they wanted to. There are even chains set up on the Bar, though they usually only run three or four deep before there are no takers. I wondered if the changes to the way the old bundles are being sold (or not being sold) isn't partially a reaction to the chains of free bundles. It time limits them to only a couple of months before the paper releases.