Heaven's Palace question

[Wildflower]

Life is unfair, why should Tynon be otherwise.

Depends on your perspective

The point of a game is to be challenging and fun.

I agree, for all involved.

Reward those who have invested a lot.

What is an investment, what is investing a lot, all open for discussion and again, depends on perspective

The game's not here to give everyone freebies.

Define freebie

Exploit is exploit no matter how hard you argue.

Quoting Dawn on this on discussing what is an exploit in another thread:

The rule (pertaining to this issue) is simple: If you find a bug, report it. If you exploit the bug for personal gain, then you may well be hit with consequences, because we're trying to keep the game fair for the people who aren't exploiting bugs.

I will address in general terms what you've stated.

We are indeed "on the hook" for bugs, and we work to fix them. However, we don't always know about every bug. If a player is exploiting a bug instead of reporting it, then they are also "on the hook" for their actions. The penalty must be more severe than the benefit, or players will be incentivized to exploit bugs, rather than report them. We want to discourage such behavior.
100 Coins and 1,000,000,000 Coins are not the same. One billion coins can alter the balance of the server. 100 coins won't. This is what constitutes a major violation. Even so, a single violation is not enough to warrant a ban. Multiple violations are required for a ban. Think on that.
What altered the balance of the server was the exploit. If the player had not exploited, he or she would not be in the top tier of the server. By removing the exploiter, we are restoring the server balance. Additionally, if a player chooses to exploit, then they are knowingly taking the risk that they will be caught and suspended or banned. Those consequences are on the exploiter. If the person did not exploit, there would be no consequences.

CHEATS AND HACKS - You agree that you will not, under any circumstances:

d. Use cheats, exploits, automation software, bots, hacks, mods or any unauthorized third-party software designed to modify or interfere with the Tynon experience or use any unauthorized third-party software that intercepts, "mines", or otherwise collects information from or through the Game or the Service, including without limitation any software that reads areas used by the Game to store information about a character or the game environment;

You may not perform any acts that we consider to be damaging to Tynon. While we try to be as lenient as possible, and take in consideration many mitigating circumstances, the reoccurring offensive trends listed above have led to the closure permanently.

I see nothing in here about finding out how things work and using that to benifit an entire server. It is not a bug or a glitch.
A bug or glitch is something that is faulty and working in the disadvantage of tynon. How they take the formation was done how they intended.
I doubt they didn't know players would find out how it is done. I give them more credit than that.
Maybe they didn't think a server would work together and perhaps they will now change how it is done..

Dawn speaks about imbalancing the server and one player growing considerably in regards to the rest. This is not what happens in this case.
Being smart and observant cannot be seen as taking advantage of a bug especially when it isn't a bug/glitch.
In my view doing it amounts to the same as not boosting in Ragnarok (or not participating) to let others win, not participating in Cerb/Ball to let others win etc.
Is that too an exploit? Where does it end?

We see how it works and then decide whether or not we wish to participate and how. But again, just a viewpoint like many others.