Earlier quoted context omitted.
Mods have always been told that subreddits are their spaces to operate and that as long as they're not breaking any of the site-wide rules, they are free to do whatever they wish. This is a violation of that trust.
How can anyone sincerely believe that being a user, even a mod, on another platform by a corporate entity lets them have their own space? I mean, of course the company owns everything one does or publishes on said platform. There is no trust because the premise is faulty in the first place. The fact that people actually believed that is not really the problem of the platform, there is always inherent platform risk.
In this case, mods trusted the company making a promise about the platform, breaking that promise breaks the trust in the company, and makes the platform risk plain to see for all.