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> Holy moly. What is going on?

People took benevolent moderation for granted. Now platform owners are getting cagey.

> Is this like when Musk censored links to Mastodon on Twitter?

In the sense that users are helpless? I guess so. The primary motivation for this behavior from Reddit seems to be their desire for an IPO though, which is becoming more and more unrealistic as protests continue. Musk censored links to Mastodon because he's a known petty manchild, Reddit is censoring alternatives in a genuine attempt to clean up their image and preserve a userbase they can monetize.

> What is going on?

they want to sell shares of their company to investors that want to see the platform growing, and censorship works

Nothing materially changed at Twitter despite all of Musk's antics, and the CEOs of Reddit and all other similar sites were taking notes.
“Dystopian” is a little dramatic