"At least stuff from Bali looks handmade and could add interest to the show."
The seller is free to sell the items they bought in many places, it is WRONG that they have a booth at a craft show when they are not handcrafting. It is WRONG that the organizer is promoting and allowing them a booth, if the organizer is promoting the show to sellers and buyers as "buy local, buy handmade".
If they want to run a "gift show" or "Women's show" available to any commercial vendor (tupperware, scentsy, whatever!), then they should do so, but not deceive crafters and showgoers who want to support handcraft - by claiming the show has one set of standards, but then boldly ignoring these standards!
Even if it is handmade by craftspeople in Bali, it usually has a distinctive look that an experienced jewellery maker can pick out. But most customers will not know the difference. This resellers is stealing sales from other jewellery makers who have invested time and skill in their craft, instead of taking the easy way out and being a reseller.