Assuming this is what happened.. why would you even worry about your intern doing a project. I don't know how long repl.it has existed (from my memory, a while) but are they that scared of something like this catching up to them and beating them in the marketplace? A product the author seemed to have no intention of releasing for commercial use anyways?
Also isn't the entire point of an internship to learn from a company they're working for? Are they worried about their own current internal employees quitting and starting a competing repl.it clone?
A bit shitty, IMO. Wonder if it's worth the hit in reputation.