It isn’t falsifying URLs. It’s swapping out the existing affiliate cookie for their own by quickly opening a link when you ask it to find coupons for you.

Sort of. But basically yes, Honey pays creators to advertise their “product” then when a viewer downloads Honey and uses it Honey steals the affiliate code money by swapping their own code in. And also not necessarily giving you the best deal, so they can keep more of the payout.