This isn't the first time reddit has removed moderators -- I'm sure everyone remembers the_donald. While the td mods did get plenty of direct warnings from the admins, ultimately the admins don't need to provide any form of warning. Reddit does own the platform (and your content), after all.
Which is why we're here!
Bad move to use reddit in a name for a product that is nearly identical to the other company's product which has a trademark on the name.