Having fun with peeling paint

I read I should wash the walls before painting them. It's our home - got to do everything the proper way! A bucket of soapy water and a rag, and we're good to go.

But with every swipe of the rag, big chunks of paint started coming off the walls! I couldn't get it to stop... I finally just stopped washing and OH MY GOSH, the paint just peels off. I've never seen paint do this. Walls, doors, trim... the peeling paint knows no boundaries.

Looks like the original paint was glossy and when the previous owners painted over it, they didn't sand or prime... so their paint just didn't stick. And... does this mean they never washed their walls? EVER?

I'm not too sad since it's this icky peachy pink color. I feel like I've been living in cotton candy land after the cotton candy went bad. The bad news is that we're forced to manually peel the walls in order to repaint it.