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Yet, one of the biggest instances of Reddit not having the resources it needed can be seen with its community moderation. The site is huge, and has a very active base of users, which makes it difficult to police when people share things that are against Reddit’s policy.

This isn't accurate. There are enough moderators, but the core issue is with transparency. Reddit's policy is more laissez-faire, in which admins won't take action unless you a) get caught breaking Reddit's rules or b) get caught violating common decency by the media.

When Reddit closed The Fappening after the publicity was on the downswing, many users asked "If The Fappening is closed due to obscene content, why are other worse subreddits not closed?", which is a fair counterpoint. Wong clarified that it was due to DCMA requests, but then stated that it's the user's responsibility not to share bad content. ( http://www.redditblog.com/2014/09/every-man-is-responsible-f... )

There's free speech, and then there's the ethics of promoting and profiting off of abusive/illegal content.

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