Then the only recourse is malicious compliance, a mod team running the sub into the ground over a few months? Or let Reddit appoint wholely unsuitable mods and laugh as the sub is run into the ground anyway. Either that or they appoint Reddit staff to moderate, their staff are stretched too thin with the extra workload (many subs will need new mods) and the sub/s collapse, or they hire more staff to moderate and the company crumbles under the inflated wage bill (explains why they desperately want any sympathetic existing mods to take on as much responsibility as possible, free labour).
Basically I don't see this ending well for Reddit.