The subreddit was eventually reclaimed, but it took some months. There's an account of the hostile takeover and clawback here: <https://old.reddit.com/r/self/comments/1xdwba/the_history_of...> (2014).
There is a reason that commercial and noncommercial organisations are so absolutely obsessed with brand management, identity, and reputation, much as I generally find that to be a somewhat absurd concern. Moderators have an absolutely vast impact on how a discussion proceeds, and ultimately on impressions going far beyond just that discussion, including the rest of Reddit (or whatever platform is involved); commercial, social, and political impacts; and the idea of a general online communications themselves.
HN would be a very different place if, say, /u/soccer were mod rather than dang, and I suspect much of its present status and value would be lost in very short order.
We've had plenty of experience, over many decades and much scale, of poorly-functioning moderation, and in general it ends quite poorly. As I've noted many times, one of the most surprising things about HN is that it's retained its status and value as a forum for as long as it has. Far longer than the original and revered Usenet (of which I was a small participant, pre-eternal-September), or Slashdot, Friendster, Digg, or even Reddit (itself a YC launch, slightly pre-dating HN, but unlike HN retaining far less of its original spirit and quality).
Turns out moderation is actually useful if you want to have interesting conversations.
Somewhere between there, and "recite these falsehoods someone paid us to make you recite or get banned", there may or may not be a point that's actually okay.
(One of the more ostentatious examples, but hardly the only one.)
However, running jokes have a tendency to morph into real movements - like flat earth theory and, arguably, Donald Trump.
Given the state of the world, I'm not sure if that will help or hurt their marketing. Probably help with enough like-minded people. Same for social nets with opposing views.
I'm not sure what effect AI will have on places like Reddit due to the community factors. It will be interesting to watch.
The model of independent subreddits only works if they are really independent. But in practice, all the big subreddits are run by the same people, heavily overlapping groups, who are in constant communication and coordination with each other via discord (previously IRC).
Some Reddit subs (as well as web forums/messageboards) have the same problem. If your views don't align with the majority (or the minority, if they run the sub), you're likely to get banned or lose the ability to post.