IANAL so can't speak to the legality of the situation. I wouldn't have necessarily done the same thing. I'm sure there are ways it could have been dealt with better. Perhaps an unbiased third party should have been given control while the options were able to be discussed. In short I haven't thought about it enough to give you a detailed response.
I wanted to reply to @tabris because I was a previous sponsor of Steemhunt. Most people will rage and shout accusations. I felt I could respond in a constructive manner.
RE: Some facts and my opinion