I’ve seen bad mod behavior before, but extortion? This requires further investgation. This mod controls what is and isn’t seen by 26million subscribers.
My initial impression is that Reddit's chaotic nature would make it easy for the issue to be brought up to the front page from any other subreddit. There's also nothing stopping any Redditor from creating an alternative sub to videos.
It is in fact trivial to create a new subreddit.
What's slightly more challenging is replicating the 26 million subscribers to /r/videos