Yes, that's exactly what I mean. Suppose HN allowed regular users to perform certain moderation actions. I use that and start powertripping and deleting all your posts, for instance. In that scenario, I expect dang would reach out to me pretty quickly and tell me to please stop doing that.
In that case, dang would be part of the "vetted set of mods" I mention with the power to overturn my decisions, because HN is paying him to make sure the site runs in line with its vision, even if that means disagreeing with the "ground-level" moderators.
I'm pretty sure you and I see eye to eye on this, given your other comments on the topic here.
It's honestly really frustrating to keep reading these takes.