This reads to me like "is it really inflation if money just got cheaper?" Which... I think the answer is "yes, that's exactly what it is"?

No, that's just a single overlevered market with, well, the banks laughing all the way to the bank? Because apparently they can get away with it.

Individual markets have crazy price increases all the time. It's happened to gold, oil, wheat, and virtually every tradeable thing ever, including housing. That it happens in one place is no reason to cry inflation.