Squish, yet again

The squish occurs because rank ranges are static instead of percentage based. So it’s just one of a few ways of normalizing competitive mode ratings. Other two most common ways-

Percentage/population based: Top 1% of ratings are K1 or top 2500 of players. Unlikely to be used because of their weird ultra inflation of returning or placement players getting put at like 4500 and fed to Tass and BYoda etc. 

Without a squish/normalization they would have an even worse spread across the various brackets, which already favors the bottom and the top.

I can't help but feel it's not intentional, like last time.  If it is intentional, could we know why?

Why? You need to whale/spend harder so that you can maintain your level. You will get benefits (Aurodium food) only at the top of k1.