It's a lot more nuanced than that. The Chapo mods wanted to follow site-wide rules but reddit refused to explain what was in violation of them.
Reddit actually has a weird history of flipflopping with the banhammer.
Back in the day, the XKCD subreddit was run by a guy who linked a Holocaust denial subreddit and the red pill in the sidebar. Reddit didn't do anything about this. In fact The Red Pill still exists.
But then when the subreddit owner closed KotakuInAction, suddenly reddit doesn't mind interfering with the free market of ideas.
If doing nothing is enough for collapse, then we've already effectively collapsed.