That is a sweet exploit. It was grey enough they should've just closed the loophole, but I think the number of cookies you got out of the jar drew their ire. The ban hammer seemed a bit heavy and Quilic's justifications were exceptionally dumb. It blows my mind what GMs say sometimes.
But I am not sure why you thought the Karen act was going to get you anywhere? Cops, mods, GMs - they will perform elaborate mental gymnastics to avoid being wrong. You don't take those roles because you are a stable, intelligent, and mature person. You take them because you enjoy power over other people. Don't argue with people who have power over you.