This doesn't make sense, they wouldn't see the traffic before it was encrypted. They would see it encrypted, but using the MITM certificate instead of Snapchat's. Given the inaccuracies in the article, it makes me wonder what else they got wrong.
Using a VPN client to monitor how much, when, and where traffic is going is bad, but MITM'ing a user's connection is much, much worse. I'm really skeptical that's what happened, especially given TC's inability to articulate accurately what Facebook did.