You're assuming a rational, reasoned process, rather than an instinctive punishment of a perceived status challenge.
When you observe someone acting in a way that seems obviously against their self-interest, it is always worth considering the possibility that there's some interest you don't understand...but it's also worth considering the possibility that they're doing a bad job of considering their own interests.
This is a key insight.
Most "rational actor" theories of human behavior actually only work in the large (where the average can dominate outlier behavior) and in systems where rational action is a positive feedback loop ("a fool and his money are soon parted").
If those assumptions break down (especially the second, i.e. if foolish use of money results in more money accruing, not less), what we perceive as rational behavior should not be expected.
This is an event that took course over 3 years! I could understand the initial actions, statements and whatnot from the department to maybe be instinctual and emotional reaction to events/messages, but during these 3 years, at least one of them must have had some still time to reflect on what they're doing.