Generally in situations like this you need to step back and look at the whole situation rather than any sum of parts.
Here is, from what I can see, what happened and what has angered some people.
Grido used a tool which lets his excommunicate and jail Eon, losing the alliance. This is a perfectly legal move, and as one of the kings of the land he can do this (or really anyone holding that tool, but thats another matter).
It then appears Eon used a bug to leave jail. Here he made a mistake by not reporting the bug.
At this point I think grido tried to send Eon back to jail by grabbing him. From what I can see this didnt work (due to whatever) and therefore he decided to use his jail spell to do so. Here he made a mistake as he forgot the most important rule "Do not use admin tools for situations you are involved in". He also didnt report the bug (until later).
And then everyone seemed to make a mistake by blowing up the forum again arguing about who is right or wrong. Roleplay your anger, even dst can roleplay, so can you! (mea culpa dst)
For better or for worse, I am the only one who can if what has happened is abuse or not. Yes we have some rules which lead you to a conclusion but at the end of the day MD will always be run by people, and not a set of continuously moving goalposts.
So then it comes the question, what do I think? What harsh punishments shall I lay out? The first thing I have to think is, what would I have done about Eon escaping jail? Well he never reported the bug and just used it. I still havent actually had a bug report so Eon is clearly in the wrong here. I hope I will receive one via email/PM soon. Technically abusing a bug and not reporting it, especially one leaving jail is quite a big abuse, but I will get onto that later.
Then I have the question, what do I do about Grido who is, clearly, according to the rules, abusing his admin powers by using them to "fix" something. He has admitted that he made a mistake using them and should have contacted someone else to resolve the situation. The rules do point out that Eon therefore does deserve to be put back as he "broke the rules" by escaping, so he does have some footing, but he acknowledges now that he did do wrong. Abusing an admin spell is also quite a big abuse, similar to the one Eon did.
But, in the end of the day we have had two good conclusions from this. We have had a little bit of excitement (Eon does send wonderfully Roleplayed PM's) and some action and I have had a time to clarify some rules for everyone. And we have a new bug to fix! (well... newish, I think I know the bug they used)
Therefore im going to do nothing to either of them. Grido has understood what he did wrong and I believe Eon will be sending me a bug report tonight. I can imagine some are going to go away from this going "oh letting them get away with murder" but actually punishment is used in MD as a learning point generally. I think both parties have learnt something.
I shall survey what is happening over the next couple days and have a think about the situation. Kyphis has already offered asylum so potentially another land might also let Eon escape by doing this.
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The take home message I would like to impart on everyone is, The rules are not hard and fast and we try and be fair. Both parties have abused something and hopefully learnt something too.
And all of this fun, should have been ingame! I act in this situation as the GM (so Eon you can stop sending the marvellously worded PM's asking me to declare my loyalty) because you guys can roleplay, and you should :)