Not sure why it was nominated. I guess, to get a nomination in the short story category, you don't need a huge number of nominations. It only needed 65, so really all it needs is a single blogger with the right followers to promote it.
I don't see this, on its own as a problem. People have always been promoting works they like for the awards. I think there may be a problem with some people being frozen out by cliques. All I can really say is we can't prove there isn't. Still, I think a more representative nominations system is a good thing even if it doesn't actually change the nominations.