Sure, but that isn't Reddit's problem. Reddit can't step in and choose sides based on he said/she said accusations about moderation drama. The fact is, this person handed over ownership of the sub to somebody else willingly. That's the end of it. Discord was another matter.
They do this all the time actually, though it's mainly here the reddit admins personally don't like the existing mods. So they're completely willing to do so for their own whims.