Well, I'll share what I know, but there are some blanks in the story.
PsyonicHero is Psyonic_Reaver on team liquid. He was a nice guy, helped people out with streaming a bunch and was fairly active in the TL LoL community. Roughly 2-3 weeks ago, he started a Customer Service internship at Riot.
Over the last weekend he was streaming games and had a game where he had first pick and was asked by his team to pick Shen. He did and expected a switch, but no one wanted to actually play shen or jungle, so he got stuck playing jungle shen. After a rough early game which got him flamed by his teammates, Psy was pushing top while the others were getting ready to engage 4v5 by dragon. Psy typed to them that his ult was down and that they shouldn't engage, but they did anyway and after getting rocked, the Ezreal flamed him and Psy flamed back pretty relentlessly. After the game, Psy banned him for 1 month, which he later decided was an overreaction and reverted the ban to either 2 or 3 days (can't remember).
Following this, the banee made a thread on the LoL forums with SSs which drew a massive amount of community ire. This later got escalated when IGN did an article on this incident and included talk about how Riot was hypocritical for doing the Tribunal System and having an Employee acting that way. I don't know how, but somehow Psyonic's real identity also got leaked and his facebook page was apparently bombarded with hate.
Now, I'm not going to say he acted in an appropriate way... Psyonic ****ed up pretty hard. His friend in the game somehow had the Deathknight Garen skin before it had been released, he wasn't supposed to have banning privileges, and he certainly shouldn't have used racial slurs as an employee of the company who made the game. But this is still a kid fresh out of college in his first job at a relaxed company that's known for trolling its playerbase and it's an isolated crime of passion. He should've been disciplined, but not fired but most measures, it's just Riot's hand was forced by the community's reaction to screenshots which were skewed against Psy (again, not saying he's in the right, but looking at the thread and the IGN article, you'd think that Ez wasn't saying anything to provoke this, whereas the reality is that it was a pretty standard flamewar where one party happened to have banning powers).
http://ve3d.ign.com/articles/news/5...y-Example-Following-LoL-Tribunal-Announcement
http://www.leagueoflegends.com/board/showthread.php?t=451882
Psyonic's Story is here:
http://www.leagueoflegends.com/board/showthread.php?t=451882&page=5