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The contract is only completed when the item is shipped. The retailer has the legal right to cancel the contract at any point prior to shipping.
Out of stock isn't a new concept for Steam. Back in the day, they would often run out of keys for games they can't generate new keys for, Like EA games.
Plus, it looks like they’re doing this sale to dump their remaining supplies because the controller is discontinued, so chances are there isn't going to be any later controllers.
So even though it might not be what you want they have done what they are obligated to.