GankTopPlz

Reddit hires staff to do moderation

and if your neighbor hires a lawn care service, you should be paid?

Right, but you also can’t create a work agreement where one was explicitly denied. It’s like mowing your neighbors lawn then asking them to pay you, but they told you they wouldn’t pay you if you did it before you started. It’s the same with the 3rd party app devs too. While I think reddits actions are insane and detrimental to the health of the site, they are fully in their right to deny those devs access to their API and their site as a whole.

and reddit has it in their TOS that no one who is a mod is an employee of reddit.

they don’t have a contract, they’re screwed.

You can always trust a large cooperation to keep your data secret more than any random individuals. They have accountability for losing your data, much more so than the people on the fediverse. A big data breach leads to class action for reddit, here it just takes down an instance and lowers the validity of the technology.