This is awful and a such a shame.
I believe the idea of a rainbow coloured cape was brought up previously on the Official Discord channel and at that point they were banning people who disagreed using the awful "keep my game non-political stance" . I wondered what changed.
I actually thought they were handling the shitty people on the discord early on but perhaps with the huge influx of people more mods were brought in and some chuds were among that bunch. Or it just never got a spotlight. Hopefully Sony and Arrowhead crackdown on this before it permanently fucks with the games image.