Reddit is a super weird situation. If you take their policies literally, it's basically a site set up where sub-reddits are pure dictatorships. So in some ways it's perfectly pro free-speech, you can always make your own sub-reddit. But in other ways it's a completely totalitarian dictatorship with all of the larger sub-reddits run by a tiny cabal of very online people. There's no mechanism to appeal the decision of a sub-reddit, and since interacting with another sub-reddit is considered harassment or brigading you can't even talk about one sub-reddit on other sub-reddits.

Doesn’t it work like that in capitalistic democracy too? The nation is formed as a liberal democracy, but it specifically allows “subnations”, i.e. corporations, to be run with much more freedom. Almost all of them are run in a very authoritarian way.

Some of those corporations are comparable to small nations in size and wealth.

Nowadays the Reddit admins order the moderators around like unpaid employees and make the mods responsible for enforcing the sitewide rules.