Since there's so many posts asking why this happened, I wanted to clarify:

Based on the abruptness, it was a quick decision and they obviously wanted to distance themselves from her quickly for some reason.

Supposedly Sidney posted something on Twitter that she got banned for and the statement happened right after.

Trump posted this on Nov 14th:

@realDonaldTrump I look forward to Mayor Giuliani spearheading the legal effort to defend OUR RIGHT to FREE and FAIR ELECTIONS! Rudy Giuliani, Joseph diGenova, Victoria Toensing, Sidney Powell, and Jenna Ellis, a truly great team, added to our other wonderful lawyers and representatives!

https://twitter.com/realDonaldTrump/status/1327811527123103746?s=20

My theory:

I think Sidney has gone off the deep end with some stuff. I'm not saying she's wrong. Just that she's been posting some pretty wild theories and claims, mostly retweeting and repeating things that haven't been vetted and making claims such as Obama hacked the 2012 election and that Trump won every single state, and that Obama and others are going to jail.

For a lawyer to be making those statements without vetting them, its kind of a big deal.

Supposedly reports from the team said Sidney has not provided them any evidence to back these up (not sure if that's true). Maybe they are unsure if she will follow through.

I think its an optics thing and they are going a different route, they want to distance themselves from her and fight via constitutional angle through the courts with actual evidence so wanted to distance themselves from the more wild claims she is making, unless it has direct evidence. Meanwhile, let Sidney do her own thing.

General Flynn has followed up:

@GenFlynn Sidney Powell has been suspended from Twitter for 12 hours. She understands the WH press release & agrees with it. She is staying the course to prove the massive deliberate election fraud that robbed #WeThePeople of our votes for President Trump & other Republican candidates.

https://twitter.com/GenFlynn/status/1330671677211029506?s=20

Overall not bad news or good news. Just a strategy. Although it appears to be an abrupt decision based on it happening right after she retweeted something on Twitter and got banned. I don't understand that connection.