Sorry. Why can't an indivudual bad actor site be targeted without affecting non bad actor sites? Why does the blocking have to be so broad?

Cloudflare don't want to lose the piracy stream sites as customers, so they can't throw them off their platform. They want to specifically block the stream sites and specifically only for Spanish visitors, so the only thing they can do is reject Spanish traffic for specific IP-ranges in their infrastructure. Result is a bunch of collateral damage.

Because both sites are on the same IP address.