Earlier quoted context omitted.
Who bans you? Instagram? Reddit?
OpenAI. I assume they have some bot that scans the internet for images matching those they have generated, which don't show the logo.
>Use of Images. Subject to your compliance with these terms and our Content Policy, you may use Generations for any legal purpose, including for commercial use. This means you may sell your rights to the Generations you create, incorporate them into works such as books, websites, and presentations, and otherwise commercialize them.
I assumed that means you can derive on the generations as well. E.g. when you are creating game assets for yourself, you won't want to have the watermark on them in the game or screenshots of the game (which may be published on the web).
---
Also, how can it even work? I take a Generation that you posted on Instagram, crop the watermark, reupload it and you will get banned?