No but it's one in a long history of siding with the most fickle and destructive of the userbase. Nobody was asking them to make a big deal out of cracker, not even actual neo nazis give a shit about cracker beyond its use as a tool to bad-faith shut down people they don't like.

This was a time when actual slurs were being thrown around completely unmoderated, famously saying that ret--d was allowed, which is an apt descriptor for what taking that stance and then proceeding to ban a bunch of their biggest left streamers for a discussing a mild slur was. It didn't appease the people it was supposed to appease, all it did was drive away even more of the less politically repugnant users.