I think part of the problem is how downvotes work in relation to your Reputation Level. Specifically this (from the FAQ):

" ... Getting downvoted by someone with a higher reputation can push your reputation down and make your posts less visible.

Users with a lower reputation score are unable to affect your reputation."

Please correct me if I'm wrong, but this means that there is at least one person at any time who is simply "untouchable", and that same person also has effectively a chunk of censorship power over the platform. Furthermore, it's not just "one" but rather an entire echleon of "untouchables" who either purposefully, or simply by use of the platform, have managed to aquire enough rep to put themselves above the reach of most of the platform's users.

I think that what you are describing is a clash between such untouchables, but that it speaks of weaknesses in the system itself. I personally don't see anything wrong with people exercising their power in whatever way their want, if it causes trouble, it is the system that is broken, not the people. They spent money, time and effort garnering their reputation, and as such they should be allowed to use it in anyway they want, even if it's censorship or just malice.

Again, if this is not meant to happen, then the problem may be the system itself.