Hah, Matt's pretty dumb. As McFly stated (and for some reason agreed with himself), Carmax auctions off any vehicle which does not meet its standards. Everything from vehicles that will end up being Frankensteined to late model Toyotas with engine sludge issues. Even repos are considered wholesale auction vehicles - if someone can't make payments, they probably can't keep up with maintenance - off to the auction block!
It's idiotic to blame Carmax for trying to maintain some semblance of standards, when you should be upset at the dealership where you purchased the vehicle. It's easier to place the blame elsewhere and not on your ineptitude and choice in purchasing locations.
As for your titling issue - you should have taken that up with the dealership where you purchased the vehicle, because the title was more than likely included when they purchased it at auction. The fact that they flipped the car to sell so quickly shows how much they cared to recondition the vehicle, and they conveniently lost the paperwork and pointed you to Carmax. Who do you really trust? The people who sold you a car with TMU, or the place that actually told you about it?