Yup, that's the "dirty little secret" of commonly-available engine hoists.
They're given a reasonable load rating only because the boom is too damn short to be useful. The hydraulics are undersized/undercapacity, the boom is undersized, the entire support structure is too-thin steel. Not only does the manufacturer save on materials, but due to the small size and light weight, they save on shipping costs.
They're essentially high-profit junk sold by disreputable companies in order to deceive the purchaser. They get by with it because most purchasers don't ask about the boom length--they "assume" that an engine hoist is suitable for hoisting engines OUT OF THE VEHICLE, not merely "up off the floor".
Commonly-available engine stands are not any better. The only reason they can achieve their rated weight capacity is because the standoffs for the bolts going into the bellhousing bolt-holes are unreasonably short--you have exceedingly poor access to the flywheel/flexplate area.
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