Actually that might be a good news. Maybe they saw the reaction from the VTS Cloud being too tall and decided to change theirs.
I would bet they saw the issues people had with the height and worked fast to resolve that issue, if he's shorter though it might **** with the bike, since he has to sit on it and be able to ride it, you know?
Man, would've been all over the Sephiroth maybe 10 years ago, maybe I'll try to get my hands on it later down the road.
I don't know why people think the two different figures from different companies are related, but as I said before, GameToys see that their own Cloud figure are not at an ideal proportion yet so they went back to the drawing board to tweak it and that involves casting new body molds and tailoring which is taking up the huge time. The headsculpt has to be sized appropriately too otherwise there will be a big head syndrome.
Sephiroth is easier because it only involves slight modification to the existing body they had, which is Ichigo Kurosaki from their previous releases.