I'm not quite ready to believe this is part of any sort of 'personal attack' against the people who were organizing/running this thing, and as Conan has shown, the bullshit about them losing $55k in budget is exactly that - bullshit.
Another possibility comes to mind - maybe the place where they were holding the event just plain got sick of furries. I mean, it's essentially the same thing they're claiming happened, only without the oh-so-sensational reason of people getting caught screwing in public.
Think about it. A group of people who already can't grasp the finer points of acceptable public behavior getting thrown out of a location for activities that, to them, seem 'normal' and 'harmless'? True, terrible behavior runs amok at conventions, but the difference there is that contracts and money are involved, and certain things can be overlooked or smoothed out with 'palm grease', so to speak. I get the impression that there was no money paid to whatever locale was hosting the event; maybe they left a mess, maybe they were too loud, maybe they were just obnoxious.
Looking back over the quoted FA posts, the guy says that a councilman came by to take pictures after receiving a complaint from a neighbor. Come the fuck on. If my neighbor is having a party with people being loud, obnoxious or, as is alleged here, screwing in plain view, I'm not going to call a city councilman. I'm going to call the cops.
And on top of everything else, police and fire departments around the country are cutting staff and budgets like crazy these days, because nobody has any damn money. Maybe this supposed phone call the poster received from the chief was just to tell him they were letting him go due to downsizing. This could also very likely have absolutely nothing to do with the party.
So here are my 4 predicted outcome possibilities:
1. The organizers decided they don't want to run it any more, and made up the whole thing to give them an excuse to stop
2. It's the prelude to a witch hunt and some names will be dropped after sufficient fervor has been worked up
3. The venue kicked them out because _____fill in the blank____
4. The organizer got shitcanned and is using this as an excuse