I agree the researcher shouldn't have escalated/pivoted once they had access, that in itself breaks their ToS for the bug bounty program. However in doing so the vuln went from "so-so" to "holy shit".
Whether this policy for disabling pivoting is realistic/a bit of a cop-out from the vendor is arguable. In the real world an attacker wouldn't hesitate, however FB can't have people crawling around their internal network, potentially breaking or leaking user information.
The researcher, with all of his experience (incl a 24K bount payout from MS) should be aware of the above. However less ethically inclined hackers would have sold this access for $100K+.
EDIT: User ryanlol has made a good point, I thought they included fucking around within the server to break ToS. But their page does not indicate that. From the article it says:
> Intentional exfiltration of data is not authorized by our bug bounty program
However the ToS only talks about USER data. AWS S3 keys aren't included we can assume.
This is a tricky situation.