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The Hugos has been targeted for political manipulation for at least a decade now. Go back and look up who the "Sad Puppies" were, as an activist organization trying to influence nominees/winners.
I don't think its unfair to say these awards have become dogshit over time, thanks to the way they've been manipulated by outside agitators to push this or that political message. I think its a stretch to say the problem is "capitalism" per se, but it is absolutely about conflating economic success with legitimacy of message. Hugo awards are a marketing tool for authors and boosted sales mean higher profiles which means more money for the next round of novels.
This creates some real perverse incentives when it comes to submissions/awards, particularly when "China Good/Bad!" readings of certain novels become this cause du jour for activists with little actual interest in the literature itself.