Your feeling turned it to be correct. Amazon lost the case in the appellate court.

But not on standing grounds.

And no, Amazon did not lose the “case”, which usually means “the whole lawsuit”. The current posture is still at the preliminary injunction stage. Amazon was granted a PI by district court (basically “perplexity, stop this now while litigation is ongoing”) and the appeals court overturned. Now the actual case can proceed at the district level.