There are other options such as stopping payouts completely and holding 100% in reserve, not shutting down completely within 48 hours.
If I were to design an anti fraud system, I'd make sure that the more problems I have with an account, the swifter I can react to changes. The payment processor may be more liable to cover damages if they already had a hunch that the company they were dealing with was bad when fraud took place.
Sounds to me like they just wanted you out and found a reason to get rid of you.