Reddit isn’t profitable, despite having more than 50 million daily active users. In preparation for an IPO, CEO Steve Huffman put the platform’s API
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I know the full context. It doesn’t really make it any better. Bringing it up in the first place is bad, regardless of any “clarification” (a.k.a. damage control).
Besides, do you really think your interpretation wouldn’t be considered a threat? Reddit won’t say publicly they considered it as one, but it is very clear they took it that way (and, probably, correctly).