What I won't do: I'm not going to tell you it wasn't your fault and mistakes weren't made, I don't have the reported records of the event.
What I will do: I will say how you are not the first, or first dozen even, nor probably the last that speaks on this matter.
I know quite a few of the mods as friends, or atleast used to though still speak to a few semi-regularly. That's not my point though. What I'm trying to say is many of them are quite outstanding individuals and not all are power hungry dictators, but it's understandable to be upset when something like that happens to you due to misunderstandings or mistakes. I'll let the finer details get sorted out by those with the greatest of control over the game, the developers.
What I also will say with your concerns in mind. As pointed out this isn't the first or even close to the first time mod abuse has been brought up by a player. I think majority of time the mods are in the right, but ...and just basing this on thought I don't have any proof to back it up, but how many reports does it take before it is actually considered that, "hey, maybe there is some mod abuse going on?" I mean I don't know, just like could it be a thing? Quite possibly. You might be correct. I think its something that needs to be looked at on a case by case basis though, and it probably does, but if not it should start to be. I sympathize with you though and do hope you'll reconsider staying, but perhaps this experience has shown you what to do and not do as things currently are. No hard feelings though to anyone, regardless of which path you take. Take care and best wishes.