"hosting content going against their ToC or similar"
Or hosting content that Hetzner misclassified as against their ToC. Or that they decided was because of a string in a random file name. Or, in one Mastodon instances case recently, because Hetzner saw that users could upload their own images and decided that was risky (nevermind that this is common and they have moderation and a strategy for if someone tries to host anything illegal, but that one employee reviewing it was twitchy that day and there is no recourse), etc.
Or, in one Mastodon instances case recently,
because Hetzner saw that users could upload their own images
Wait, what? Yikes. I'm planning a project like that. Do you have a link to more information?
Employee? I'm sure it's an "AI" script to reduce costs.