IANAL but there's suppose to be a blurb in there about not exercising too much control over the content. The more moderating decisions the admins get involved in, the greater the risk in going afoul of this. Once the company has editorial control, they lose the Section 230 protections.
However, since it's been clarified that the mods did it rather than the admins and it was over the John Oliver rule, that means none of the above applies and it's not a violation.