Well, that's definitely a good thing that the racism bit was a false flag, however I'm not sure how this debunks some of the other accusations against her (unless I'm missing something)
I figured people can make up their own minds. The twitter thread seems pretty damning, and all of the responses in this thread were responding to that and that alone.
The twitter thread claims that she stole a character from an ex-friend. She claims that she had a bitter falling out with that person, and her ex-friend tried to get revenge by posting lies and false contracts on the internet. She says that she posted the real contract, and stopped using the character.
The twitter thread claims that she tried to sue Disney over Zootopia. She says that she had a comic called Zoophobia and she had an emotional reaction to the reveal of Disney's name/logo, so she tweeted about her emotions. She got over it and loves the movie.
The twitter thread claims that she's transphobic/racist because she's a fan of two youtubers who are. She claims that she was watching their videos (not following their twitter) and liked some of what they had to say, and she thought they were pretty so she sketched them. She claims that she's not transphobic/racist.
She admits that she's drawn some fucked up shit in the past. But people had to go digging to find it.
She admits to doing some tracing. Calls it an homage. (And I gotta say, she references people copying the Akira bike slide, and I literally just saw an anime do a frame-by-frame recreation of that one a couple of days ago).
She defended an accused person once, because she knew them personally and believed that the allegations were false. She also seems to hate "cancel culture" because people have been trying to weaponize it against her for years, so that has colored her opinion of it.