Just greed driving a series of errors and missteps.
Better way to go about this would be for users to go to Reddit, put in their credit card to cover their own usage to be billed monthly, get a token, and feed the token into Apollo, replacing the Apollo "master" token we all browsed through. Apollo can be billed separately however it will be billed (subscription, one-time, whatever), but Apollo shouldn't bill me for my Reddit usage -- Reddit should. Maybe that was on the table at one point or another, maybe it still is, but the narrative is painful.
Let's not make Reddit out to be innocent in this regardless. Yes, the API was costing them money to run. Yes, third-party apps were going around ads. But they still got the engagement and data, things that definitely help drive this imminent IPO valuation. This could have been a longer-term dialog in the spirit of partnership, not a "we need to do this right now, you have 30-60-90 days to comply" with ultimatums.
Heck -- even acquiring some of these third-parties would have made sense. They bought Alien Blue a few years ago. Certainly could have worked out a deal to buy Apollo, RIF, etc. I don't know of anyone that loves the official Reddit app if they've used any of the larger alternatives like Apollo.
I'm in the corporate world, I get both sides. Just unfortunate nonetheless, feels like a cleaner path could have been forged.