The fact its a fursona is only vaguely related. What started the whole thing was a joke that you have to get insider Horror's pants for an emote (the emote in question got through solely because it was his boyfriend's). And apparently Horror doesn't take too kindly to accusations of cronyism.
I think the word you're looking for is nepotism, not cronyism. And the joke was made because of a sentiment held by plenty of people, "It is inappropriate that this guy puts up a LITERALLY PORN PICTURE, especially after deleting somebody's emoticons for "copyright claims." Literally every account of this story starts this way, including Duke Bilgewater's.
That is how the whole drama started. It escalated very quickly and now it's shown a very real problem with Twitch's admins, but the initial outrage was so stupid. Sentiments afterwards like this http://i.imgur.com/SUGOe8a.jpg are equally stupid.
Also, Horror claims he was asleep at the time of Duke's banning. We shouldn't take his word for it, but that's something.
you really are willing to dig yourself deeper, aren't you
and no, whatever bullshit excuse they pedaled out for the initial removal isn't taken seriously by anyone
What? This may just be the shallowest, most inconsequential hole I've ever dug myself into. The emoticons were removed because of a copyright claim. This happens all the time on Twitch. It also has very little to do with the rest of the drama, which I'm not saying is okay.
So I don't even know what your fucking deal is, gee whiz.