tl;dr: The channel got banned because Henry is an idiot.
Their channel hat 1.5 billion views towards the end, at a modest 5$ cpm that would have been 7.5 million dollars of revenue, almost 1 million dollars per year their channel was active. I cannot see a reality where striking or fully demonetizing a channel of this size comes down to a single, underpaid moderator gone rogue. Banning them almost certainly took approval of multiple people.
There is also this theory that the 'rogue moderator' went through their back catalogue. Youtube almost certainly dictates what these members of staff look at and won't pay someone to just go and watch some random old video of his own choice. The far more likely version of this story is that youtube developed an improved moderation AI and when it got deployed, it went through all videos on the platform over the course of a couple of months to catch violations that were missed by the previous versions of the AI. It flagged something as a potential violation, that got sent to human review, the moderator marked it as stikeable, multiple other moderators agreed and the business side said "we don't need them, go ahead".
Also, we know who made the moderators watch the same video five times in a row. It's Henry. He would always upload multiple versions of the same video to see which ones would get monetized. And if one got demonetized by the AI reviewer, he would always request human review.
This essentially means that he was trying to get things monetized that advertisers do not want to be associated with, which youtube likely sees as problematic already because it can get them in hot water with advertisers. Then when the one monetized version went public, half the time it got demonetized anyways as other moderators responded to active user reports about things the initial human review had missed. At that point the video is just a huge cost factor to youtube. Remember that youtube's cut of the CPM needs to pay for storage, compute and bandwidth for every view. This makes profit margins per video slim already. Especially if half the videos are demonetized, paying for multiple human reviews can easily make the average MxR video a net loss. This theory is supported by the fact that the channel got fully demonetized a couple of months before the ban.
Henry made the channel profitable for himself, mostly through sponsorships and patreon, while forgetting that his business partner youtube also wants to make some money. Instead of taking care of their side, he intentionally generated more workload for them while constantly insulting them publically and insinuating they were on a vendetta against him. Would you do business with someone like this?
The only reason youtube keeps channels around after full demonetization is because those channels still help youtube preserve its quasi-monopoly on long form, user generated video on demand. But that's a fairly weak financial argument so at that point the channel is at the edge of the cliff. Instead of recognizing this, going with more tame content and trying to mend bridges, Henry just kept going. Off the cliff.