Patreon canceled a bunch of creators. There were "contracts" in place between the creator and their subscribers. Subscribers sued Patreon. Judge ruled that patreon has to pay up to 10k in arbitration fees up front for each subscriber who sues them.

They just raised $60M in vc funding 9 months ago.

If 6,000 subscribers sue them, they will be bankrupt.

A banned user told his subscribers to sue Patreon which forces arbitration as per California law. Because of this law Patreon has to put up the cost for arbitration which will cost millions of dollars. They sued to stop this action and lost and if others can use this same method they will likely run out of money and fold up shop.