As a forum owner, it's probably because a staff was being lulzy and accidentally selected something unimportant like making a user unable to report, and either didn't see or didn't care.
I'd imagine something like this.
I can't remember if it was true or not, but I believe Badspot used to have to manually accept every new member on the forums, around about back in 2008/9 (or earlier).
Because there was this one time he accidentally made someone a Moderator, and they went and forgeted up some topics and banned a couple of people, before Badspot got rid of them and undid all the damage.
So it could be that his position was set as such by mistake.
Or, it really was a punishment for an account that was made solely to report users.
