They did successfully block his requests. The issue is that he was charging for the service, and that was against their policy. That's why he was disciplined (though I find their response laughable and misguided).
This is basically what happens when bad administrators are made to look bad after they over-react to someone providing the community a service that the university chose not to. They find some flimsy excuse to punish the party they irrationally blame for their own actions.