Sure, but moderators are elected by the community, Monica was elected before the new policy was a thing, and the community including Monica and StackExchange were discussing what the new policy was going to look like (the policy hadn't even been finalized yet, let alone rolled out) when SE went and fired Monica (doesn't matter what the reason, firing people from elected positions without consensus doesn't go over well) and dissed Monica (by name!) to the media.

And then obviously Monica crowdfunded $25k to sue SE, they came to an agreement and neither party really talks about the incident any more.

There was really no need for the situation to escalate as harshly as it did and SE shot themselves in the foot repeatedly.