I don't think you've mentioned the preliminaries of your dealing with her so it's difficult to tell what happened. I think it's quite obvious that you didn't get what you thought you were paying for. I also have the impression that this was a "one and done" thing. You sent the manuscript, she marked it up and sent it back. Done!
That was my opinion, and frankly, I was shocked when she simply went off on her own. We'd talked when I first had her provide a sample edit (almost two years ago), where I laid out what I was looking for. But this time, once I sent her the story, there was no communication.
Does an author really need to ask "Please don't butcher my story?"
I was initially pleased with the results, but then I got the feedback from the other authors here (expressing the wouldn't even read the edited version). Then I began noticing all the errors, not just in the text itself, but also in her analysis and objections to what I'd written.
richard Shagrin, you're right about the role of reviewer. In a traditionally published story, you get no feedback on how well a story succeeds, or where it fails (from a reader's perspective). Instead you're left in the dark. Even if you self-publish, you almost never hear from those who purchase your stories.