Is it a correct and expected behavior when the extension is being approved, you notify your users that they can finally install it, and then after 16 hours the same version is rejected and became unavailable?
What is the point in such both sides reputation ruining approach?
Is there any way to prevent it or fight it?
Why can’t you keep it in Pending Review Status for some period of time as it’s done on other platforms, do your review and then either approve or reject?
What is the normal waiting time for the reviewer to read your explanation and react?
Thank you!
Not all extensions are being manually reviewed. That’s why there is the scary warning on all those extensions.
So if your extension passes automatic tests, it will be released. Then if some reviewer checks your code and finds serious problems, he can take it down.
Now this is actually quite ok, because you can fix your code and release an update and you will back online (after those automatic tests).
I’m releasing my extensions also for Chrome store where the situation is MUCH WORSE!
Not only releasing usually takes much more time (days), but I get rejected for no reason all the time. Even after it was approved.
Especially things like adding promo image or changing description (without changing uploaded extension) will often result in immediate rejection.
So if you think this is bad, know that it could be much worse 
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Never got such experience on Chrome store, to be honest. Waiting to get approved (especially during Covid) is ok, new requirements to define why exactly do you need this or that settings ok as well, but we never got any rejection after approval.
Why not to say “Pre-approved, don’t show it anyone until human approve will be done”?
They don’t have enough resources to check all extensions, so I would say most of the extensions will never be reviewed. I would guess that if there is a lot of warnings coming from the linter, you have better chance to be reviewed.
Regarding Chrome store - it used to be really smooth and fast. It changed last autumn when they found those fake “cookie stuffing” adblockers. Ever since it’s been terrible. Just check their support forum, it’s full of users complaining about it.