I'm a mod on Academia.SE. After reading the official SE response, I'm going to temporarily suspend my mod activities as well. The disrespect being shown to a well-respected volunteer simply trying to understand what is going on, combined with the terrible handling of the actual firing, combined with the non-apology apology, are a bit over the top.
I encourage The Powers That Be™ to reconsider all their actions here, and think deeply about the types of behavior they want to encourage in their community.
EDIT 11/26: In response to SE's recent efforts to fix some of the problems highlighted here, I have resumed moderation activities. I posted more detail on my thoughts on Academia Meta.