Nice bit of investigation

How Six Apart's Greed Allied Them With Neo-Nazis by stewardess.

What fandom didn't know: Six Apart was vulnerable to scandal because they are dreaming of an IPO (initial public offering), also known as "going public," also known as selling shitloads of stock. So "cleaning up" LiveJournal, making it pretty for investors, was something Six Apart management was already planning. They weren't thinking just of pedophiles -- anything that could look creepy to investors was a concern. They wanted to be sure there would be nothing the press could grab hold of.

(Updates here on GJ because apparently stewardess is having trouble editing on LJ. Why are we not surprised?

Here's another view of the fracas, from outside

Live Journal Attacked by Inocents (?) by panGloss

A rather more likely rumour is that LJ at first held firm, confident they were protected by the CDA, but panicked when WFI began going round their advertisers suggesting that LJ was not a nice place to hang out. This seems to have lead to a rather panicky surge of deletions of communities and journals. A more helpful approach would probably have been to have identified, before deletion or suspension, which communities were at least devoted to incest survivor support, and spared them the trouble of protest.

There are several opinions expressed that I don't agree with, but then it's an outsider. Some of them are answered in the comments, so keep scrolling.