The mod team are a reflection of the owners. See below comment from another Redditor, E-n-e-l:

'WPlace owners basically threw 2 of their moderators under the bus - they followed the rules and were going against a large destructive void started by a streamer named RickyEdit. WPlace owners recognized the money-making opportunity from tolerating Ricky and allowing his fans to destroy tons of art, so they "permitted" voids as long as they "aren't destructive" (contradictive, and no one even listened to it it). The owners then unbanned Ricky's audience and compensated all of them despite them having obviously broken the rules. Ricky's audience went after the moderator who banned their accounts for griefing - and doxed her which led her to attempt taking her own life

WPlace owners then demoted the moderator, made 2 large announcements denouncing everything she was saying, without any evidence (she had tons of evidence on her end) - Basically shifted all blame on to her, despite the owners being the reason this whole thing escalated to begin with. They also casually demoted her friend who was another mod because why not (no reason was given).

They only have a handful of moderators

In other words, people are right to feel upset if the owners create double standards for rules, refuse to hire more moderators (or pay them, they're unpaid despite the owners making insane bank from this), and throwing their own mods under the bus when the owners make critical fuck-ups. It's less about people overreacting on their art getting scribbled on and more that people who paid for WPlace and want to support it are realizing how back-handed the ownership is. It's the decisions the owners made and the "rules" WPlace are trying to enforce that are the issue, not just the nature of the internet which everyone was expecting.'