As to what DVC/DVD can do or does with points that it owns or points it controls as a result of a trade-out, one needs to first understand the rules that apply. There are essentially two rules. One is what the official documents say. They say that DVC/DVD can make reservations only under the same rules applicable to all owners. At first glance, one may think that is a favorable rule for DVC members, e.g., DVCMC (the one that controls points traded out) or DVD (the one that retains ownership a certain percentage of the points), can only use points to make reservations beginning 11 months out for resorts to which the points belong or 7 months out for others, and they follow the first come first served rule.
However, that "same as owner" rule means DVC/DVD gets to act just like owners and reserve a room for a specific time as an owner -- and then rent it later. In other words, looking only at the reservation rules, DVC/DVD could, if it wanted to, use many of its VGF points it has to reserve VGF studios for all the holidays and race weekends at 11 months out and then later rent those reservations. Moreover, it gets to bank the points if they can be banked into the next year, and thus points that come to it before the last four months of a use year can be banked and used for an 11 month reservation in the next use year.
The rule that prevents that is legal. DVC/DVD stands in a fiduciary relationship with the members as a whole and as a fiduciary it is required to act in the best interests of the members as a whole. That rule limits its ability to do predatory reserving by seizing control of a significant number of reservations for highly demanded rooms for high demand times, but it still leaves DVC/DVD a lot of leeway in what it can get away with.
Like others, I do not know specifically know what policies DVD/DVC actually follows for rentals of DVC rooms. My sense is that it generally follows a process that cannot be considered predatory reserving. A business factor that likely goes into the process chosen is the probability of being able to rent the points at the best possible price, which might lean toward not reserving rooms before rooms are actually rented to others, particularly if they can banked if no rental occurs. Another business factor is that it may not be a good choice to hold up rooms for a number of the high demand times for DVC, like first two weeks of December, which may not be high demand times for non-DVC owners who will be renting through CRO.