You'd be right if Ransom's game were named Candy Crunch or something which could easily be mistaken for "Candy Crush." But "Candy Swipe" is pretty obviously different, and King applying for a trademark on "Candy Crush" does not give them ownership of the word "Candy" in any game.
This has always been a case of King way, way overstepping their legal authority under trademark law. I would've preferred the lawyers behind it being disbarred for ignorance of the law. But I suspect King will be canning them for leading the company on this wild goose chase, which I suppose is good enough.