Why do they hate it? Because a. it is stupid, and b. its sole purpose is to signal allegiance to the Transgenders.
Next question?
It’s a made up term designed to include Latino and Latina in one term. The problem is they didn’t run it past Spanish speakers who would have told them that it’s stupid, the language doesn’t work that way. It didn’t have anything to do with transgenders originally. If it’s being interpreted that way now it’s trying to put a new spin on it to latch on to the newfound tranny mania BS.