It sounds like this was done without any warning, too. Subs can, and have, changed their rules many times. Users voting to allow NSFW content is already precedented.
Unilaterally removing mods who are in direct compliance with your order to reopen the sub isn't a good look, particularly since one of the biggest drivers of this protest is the lack of communication with mods.
Judging by the comments you get if you suggest switching away from Reddit, Reddit will do very well. I won’t be there, but they’ll be successful even if the site goes more to shit.