1) He hosted nazi websites, without action even though it was reprehensible speech.
2) He dumped those clients, when they insinuated that Cloudflare was on their side.
That makes it slander, and insinuation that Cloudflare is a Nazi Sympathiser.
I would expect the CEO of such a firm to do something immediately to take care of his firms share holders and its reputation.
He did just that, and improved its image as a result.
How is that a problem? I would expect all firms to act like that, or be known as Nazi sympathisers.