This one will pass as they lose substantial number of users and contribute to the growing fidiverse.
However for them, it's not a big deal as the get the following benefits
- All undesirable users leave for fidiverse or other reddit alternatives.
- The remaining users will be tame like the users of FB, Instagram. Which destroys Reddit as we know it, but the new Sanitised Reddit will be more appealing to investors in an IPO even with less users.
Hopefully this is a turning point and leads to the development of The real Web 3.0, federated version of Web 1.0. (The Metaverse bullshit can no longer be called Web 3.0)