I've dealt with reddit's administrators from a moderator side before, and they can just shadowban moderators they don't like. It makes no sense to ban a subreddit for the actions of that subreddit's moderators when they can just remove the moderators that are the issue.
I suspect they wanted to ban certain subreddits, and "the subreddit has toxic moderators" is a good reason to give publicly. Nonetheless, they've always had policies for dealing with toxic moderators that don't involve removal of subreddits.
If you're monetising a website, and the most active and fasting growing sub on your website (aside from the defaults) is a subreddit dedicated to mocking fat people, I think that may make it a difficult sell.
It's becoming more clear that Reddit took action specifically because of the Imgur insult, and that makes a lot of sense from a business perspective. But from a wider perspective it looks very focused and targeted - not in a good way.
I said exactly as much in my comment?
Is there any reason at all to think that /r/fatpeoplehate5 is not going to be administrated in exactly the same way that /r/fatpeoplehate was?
Is this some sort of trick physics question?
It seems to me to be possible to have this sort of feature in software... it's like a channel in IRC with out an op.
Also, how is what the mods were doing not a speech issue? If crimes were committed surely reddit was not negligent in reporting these to authorities?