NOTE: The URL linked to this post is a web.archive.org archive linked to a Libreddit instance to prevent Reddit from taking down that post from the internet + prevent giving Reddit direct traffic. Other links linked here go straight to Libreddit urls or to news articles. No links here lead directly to Reddit.
Libreddit is a third-party web client hosted by third-party servers.
I’m assuming just current reddit admins are going to take over or getting some certain moderators from subreddits (that aren’t even of high ranking) to take over and remove the higher rankings from power, which then they will be the ones reopening the subreddits.
If reddit employees start engaging in actual content moderation, reddit will run up against the DMCA's safe harbor protections, which means reddit becomes responsible, as a company, for all the content on the site. Or, at least, in those subreddits.
Ain't no way the legal team is going to let an employee do the actual moderation work. But you're right, they'll find someone who will do it for the power.
It's crazy that some people in these enormous subs pretty much run moderation as a full time job for nothing. Like I totally understand hobbies or contributing to something for the greater good, even I contribute where I can in the open source arena! But to religiously undertake a role like this daily just for the title of MOD is insane to me....
The DMCA sets out several requirements for eligibility for the "safe harbor" provisions, but they basically boil down to "you can't be the entity that posts infringing material, and you need to remove infringing material when notified of the infringement" plus some legal stuff around having a designated agent to receive complaints, etc.
Having the moderators be Reddit themselves doesn't present a problem here. If Reddit themselves start actually uploading infringing material, then they'd have no protection against a complaint on that material, but that's it.
Consider Twitter, YouTube, etc. All of them do 1st party moderation of copyrighted material, and they haven't lost their protection there either.
It is similar to a coup but from the top, so it‘s more like "consolidating power" phase which dictatorships do go through. Dissenters get removed and replaced by willing servants until the platform is more spez and less "The People". Meanwhile he pretends like somehow the mods are the actual dictators or some shit to make all this palatable to those that still use Reddit, which in my cynical view they will eat up. Reddit is dead and done for anyone who values actual community over ads.