I'm less interested in bad moderators per se, as much as I am more concerned about "permanently owning a major, important name on Reddit".
On IRC, if the channel goes dead, the channel name is back up for grabs. This means that the admins can kick everyone out of a room and "Reset the ownership" of a name, if necessary. (Ex: #Ubuntu suffers from a glitch and gets taken over by griefers. Admins come in, kick everyone off, and gives official #Ubuntu devs control of the channel again).
Reddit can ban redditors who are poor behaving (even moderators). But the name of the channel remains in their control. The subreddit name can be lost forever. I don't think its a good system of name management.
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USENET was way more ad-hoc. The alt.* distribution lists were fully unmoderated and fully ad-hoc from what I remember. I don't think it was even possible to ban anyone, and as such, a lot of those alt.* channels became filled with spam, porn, and other unfavorable material.
The comp.* moderated lists were done better. I don't fully recall the administrative structure. But I know it wasn't done like how Reddit did things.
Reddit's decisions can be discussed in light of its competitors. Be it Discord (today), or USENET / IRC (from the past).