That's not really a free market now is it?

Actually it is. A market has both buyers and sellers which react to the price fluctuations in opposite ways. The price of hbd is above its set value of one usd worth of hive, it's only natural for one set of market participants to increase supply as a response to the demand side of the equation.

It's understood that this is just a stop gap solution before the next hardfork which will introduce the possibility to convert hive to hbd.

Would you object to a company that increases the production of a commodity in response to the excess demand of its product? Because this is what is happening, the stakeholders of the "company" known as hive have decided to divert resources to ramp up the supply of hbd in response to the signal from the market reflected in the price.