There's not enough information to explore potential causality here. All we have is the word of an aggrieved site owner who swears up and down that he was engaged in perfectly unimpeachable conduct. There's no evidence, just whining.
Of course there's more to the story, but I don't think that's the issue here. Google still doesn't have a way to dispute these kinds of things in a timely manner, and that scares people who rely on them for their business.