They don't know that. It's the hypocracy of not using their service to infringe on someone elses copyright. The only way Compaq could legally have a PC BIOS is by having one team reverse engineer the original and describe what it does and another team reimplement it.

Yes, it's completely hypocritical because of how LLMs are built. That doesn't change the fact that if you're offering a service online, you'd try to prevent abuse in order not to be held liable.

We don't really have any idea what was in his sessions or why he was suspended. It might have been a false positive in their automated system, or maybe he ranted at the model about how he was going to "destroy" Samsung with his findings and the automated systems took that literally. There are tons of examples around of people using models for reverse engineering, so we know it's unlikely that alone was the reason.