From what I've gathered from the various references, a mod questioned if the use of gender neutral pronouns such as "they" would be acceptable in response to new rules being announced to moderators that the persons specified pronouns should be used. Despite the fact these rules were not even implemented officially, the mod was terminated immediately.
Now what we see here is them backtracking, but I don't believe they have reinstated the mod. So I don't believe they think are truly remorseful and have realized they overstepped the mark.