So we have Turncoat who is scared that Luna is going to act up and change this place/violate its rules, so he accepts the mod to a potentially new SC forum on KF. Luna thinks that considering all the time and effort spent on SC, Turn's attitude is a betrayal, so she decides to... act up/violate some rules and punish Turncoat with demodding/banning. Luna also plans on not making any other changes to the rules or name of this place.
If Luna bans TC, there will be a split in the community, a lot of drama, and my prediction is that the KF SC section will slowly dissolve as the larger bulk of users will stay here.
If Luna is generous and doesn't ban TC, and TC keeps KF modship, everything will stay as it is, no one will migrate.
If TC is generous and renounces KF modship, and Luna doesn't ban TC, everything will stay as it is, no one will migrate.
So yeah, looking at the facts, I suggest that the best course of action for everyone is TC renouncing the modship on KF and not setting in motion the self fulfilling prophecy...