Mods and admins on the Fediverse are not democratically elected, they have complete control. Accusing one of “power tripping”, in their own community, on the instance they presumably pay for, is not a rational accusation, since they definitionally cannot exist in a state of less power. What that community is trying to do is use the threat of public shaming to influence behavior. It’s how you get weak moderation and generic communities where bad actors can thrive. A community dedicated to “Stopping bad mods” sounds good on the surface, but it’s an argument made in bad faith.
It’s theirs. They can do whatever they want. Any limits their power within the instance/community is purely voluntary on the part of the owner.