Wonder what the 'real' issue is with them not being able to transfer title, seems odd. Typically this can happen when shady dealers sell a car they took in with a lien that they failed to payoff, but I've not heard of ppl complaining their loans are not being paid off after selling to Carvana.
They are offering to buy back the cars with title issues, so it's not like they are trying to slither away from the issue.