OP uses this story as an example of having "moderator fingerprints on them" i.e moderators censoring posts, which is not true. What happened was the opposite : the moderator uncensored a post flagged by the community.
If what is being said in other threads is true, high karma accounts clicking flag could push a post off the front page without showing the "flagged" tag, then that could be an explanation instead. Which would then mean that maybe these high karma users have too much power.
And on top of that are allowed to use HN as a platform to ask other users to jump to their aid in flagging stories they don't like.