My thoughts on this:
Op reacted immaturely to having his Moderator status removed.
Arma should of had more trust in him as a Mod.
In similar situations where a player says one thing and a mod says otherwise, i have seen Arma side with the player more than not.
I know from experience moderating the Jail Rp, that after players have freekilled and I kick them for it, they would come back saying they did nothing and Arma would get on to me for "unfairly kicking the player" even when he didn't witness it himself.
But I think the fault lies more with the OP for reacting to the situation by insulting him repeatedly, and in the screenshot posted by Drunk Driver he seems to be acting very immaturely.
That's about all I have to say.