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hmmm…. If you can upload other themes them it’s not your file permissions CHMOD.
And you’ve tried zipped and unzipped.
So, I suspect maybe one of two things. Either you’ve ran out of allowed disk space in your hosting, or they are disallowing a particular file type or something.
Have you uploaded other themes that are “advanced” as GoodNews? Pro ones, not the free ones?
Ya, hopefully your webhost will properly look into the issue. Bluehost is supposed to be good, but stuff can happen sometimes I guess. I use Hostgator, no problems with the theme.
Anyway, good luck…..