In so far as I can remember he had good relations with many on the staff and even ended up with a special icon next to his username.

The /r/SubredditDrama posts in regards to the incident are correct as I remember it:

Part I - violentacrez: https://archive.is/7ygdr

Part II - CreepShots: https://archive.is/8AVd8

Part 2 above ends with a link to VAs alleged last comments with an alt:

http://i.imgur.com/E8fCA.png

The special icon was subreddit CSS added most likely by himself. Give me five minutes and a subreddit and I'll make your username 72px. The admins didn't bless him with a flag at any time.

It's a common meme that violentacrez was "special," had some kind of sway with the admins beyond any other moderator, received instruction from the admins that was unique and not the usual ban threats that many subs get in modmail, and so on. Most people who say these things heard it from someone else, because the actual story is that he was barely tolerated. He even says so himself in your linked thread.

I don't get the elevation of violentacrez to something special. I see it a lot (friendly with the admins! The admins asked him to help with creepshots! it's all over this thread) and I don't get it. He was a power mod. So are hundreds of others. There are a bunch of Reddit yarns that put the Kubrick lunar landing to shame; some of them are making an appearance in this thread.

Wow, guess I somehow missed this dramafest.