Reddit is a crossroads: It's an intersection between the cultures of 4chan (which is in itself an intersection of japanese and american sensibilities), and the culture of usenet, and internet forums, and a dozen other cultures besides. None of these cultures handle censorship well. They all originated in an environment where, to some extent, you could say whatever the hell you like. Many of Reddit's early users came…
The problem is that reddit is trying to be both a neutral platform and a cohesive community at the same time. No one gets mad at phpBB when someone deploys a forum with an objectionable theme because it's understood that they had no involvement, they just provided the code for anyone and everyone to use in accordance with a FOSS license. reddit tried to do that with hosted subreddits, but it also tried to cross-polli…
It's such thinly veiled hate speech. The tone of the denials hint to those who are anti-semitic that this will be their platform from which to indulge in their hatred.
Even a decade ago, no large corporate forum would put up with this sort of liability. It's crazy.