i would be torn to report her. i dont think it was done rudely. and i dont know all the circumstances. maybe she never used it and it didnt quite fit her tastes and she passed it on to her new partner. maybe she told her new partner she was doing this. i dont know enough about the situation.
i read another thread in the swap section about how other crafters have done the same thing but they let the orig. crafter know they were going to give it to someone else in a swap.
in all honesty if she wasnt using it and it didnt fit her 'likes' then i hope this new owner will use it. i would rather it be appreciated by someone than thrown away or left in a closet to collect dust.