Even if he's "right" what "Spez" has done here is pure idiocy.
Even if Reddit comes out of this largely unharmed, why did they even take the risk? Why didn't they just incrementally increase API pricing or implement policies that slowly kill off 3rd party apps one at a time? What he's doing is simply bad from a strategical perspective.
But further, this event has put me off ever wanting to invest in Reddit post-IPO. "Spez" seems approaching conflict like a child in an argument with their parents might. Even if you like Reddit's product I don't know how anyone in their right mind would invest in a company where a child is calling all the shots. The dude edits comments to pwn people he doesn't like, he lies, he's comes off as arrogant and entitled. It's just so unprofessional.
If anyone else was in charge I'd have assumed they wanted the controversy.