I heard the first rumblings of this a day or so ago, but the movement--as happens online--has grown very fast indeed. My understanding of it is like this:

For some reason all fiction considered LGBT has been categorized as 'Adult' content--regardless of any actual sexual content--and in the past two days this has led to all such books (or a large number, at any rate) being de-listed from Amazon's bestseller lists.

It's not entirely clear to me yet that this was a conscious policy by Amazon. Some customer service reps have claimed it to be a 'glitch.' It's possible it was the result of an unwise decision to automate the system that responds to customers flagging books for 'offensive content.' But even if it was the latter, this may turn out to be an excellent example of why you shouldn't leave to algorithms those tasks most in need of human eyes.

Regardless of the cause, Amazon seems to have a problem on its hands. And given Bezos' reputation (deserved or otherwise) for supporting the Republican Party (and, therefore, by association, anti-gay politics), the bad press here might stick for a while.

Here's a sampling of the posts I've seen about it today: Slashdot; Daily Kos; Andrew Sullivan; an angry letter from Booksquare; an LJ post by writer Mark Probst, who seems to have a better handle on what's happening than most; a biting new definition of Amazon Rank and the angry post urging people to googlebomb it to a high pagerank; and a post that suggests this all may not be what it appears (though contra this post, I would say that I have only ever heard Bezos' politics described as right-of-center).

Update: And it turns out it was a glitch. But still likely to be a mess to fix.